Allison Company Purchased a Machine for $1,200,000 at the Beginning

Essay

Allison Company purchased a machine for $1,200,000 at the beginning of 2013. Allison was using the double-declining-balance (200%) method to depreciate the asset and its useful life was estimated to be 5 years with a residual value of $200,000. At the end of 2014, Allison Co. estimates the future cash flows from the asset to be equal to $500,000 and the fair value to be $450,000.
Required:
What is the amount of the impairment loss?