Create the journal entry to record the impairment loss

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Problem 1: Blue Corp., a small company that follows ASPE, owns machinery that cost $935,000 and has accumulated depreciation of $415,000. The undiscounted future net cash flows from the use of the asset are expected to be $487,000. The equipment's fair value is $435,000. Using the cost recovery impairment model, prepare the journal entry, if any, to record the impairment loss.

Reference no: EM132610713

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