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

Short Answer

Allison Company purchased a machine for $1,200,000 at the beginning of 2009.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 2010,Allison Co.estimates the future cash flows from the asset to be equal to $500,000 and the fair value to be $450,000.What is the amount of the impairment loss?