A Company Purchased Equipment for $800,000 and Has Depreciated It

Essay

A company purchased equipment for $800,000 and has depreciated it for the past 5 years when its original life was estimated to be 10 years with a $200,000 residual value. The equipment's utility to the company has declined because they expect it to generate a net cash flow over the remaining years of $200,000 from its operation. If the asset has been impaired, how much will be recorded as a loss in the current year?