On December 31, 2020, Sardines Company has an item of machinery with a cost of $4,500,000 and an accumulated depreciation of $1,800,000. On this date, the machinery is found to be impaired due to obsolescence and a major physical damage. The entity made an assessment and test for recoverability of the asset and determined that the machinery's estimated selling price is $2,500,000 and estimated disposal cost is $250,000. The entity expects net future undiscounted cash flows related to the continued use and eventual disposal of the machinery of $2,600,000. The net future discount cashflows related to the continued use and eventual disposal of the machinery using a discount rate of 10% is $2,180,000.  Sardines should report an impairment loss in 2020 of?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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On December 31, 2020, Sardines Company has an item of machinery with a cost of $4,500,000 and an accumulated depreciation of $1,800,000. On this date, the machinery is found to be impaired due to obsolescence and a major physical damage.

The entity made an assessment and test for recoverability of the asset and determined that the machinery's estimated selling price is $2,500,000 and estimated disposal cost is $250,000. The entity expects net future undiscounted cash flows related to the continued use and eventual disposal of the machinery of $2,600,000. The net future discount cashflows related to the continued use and eventual disposal of the machinery using a discount rate of 10% is $2,180,000.

 Sardines should report an impairment loss in 2020 of?

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