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Four years ago Ornega Technology. Inc, acquired a machine to use in its computer chip...

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Accounting

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Four years ago Ornega Technology. Inc, acquired a machine to use in its computer chip menufacturing operations at a cost of $35,000,000 The firm expected the machine to have a seven-year useful life and a zero salvage value The company has been using straight-line depreciation for the asset Due to the rapid rate of technological change in the industry, at the end of Year 4 , Omega estimates that the machine is capable of generating (undiscounted) future cash flows of $11,000,000 Based on the cuoted market. prices of similar assets, Omega estimates the machine to have a fair value of $9.500,000 Required: 1. What is the mochine's book value at the end of Year 4 ? 2. Should Omega recognize an impairment of this assep? If so, what amount of the impairment loss should be recognized? 3. At the end of Year 4, at what amount should the machine appear in Omega's balance sheer

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