Certain items of machinery appeared to have suffered a permanent diminution in value. The inventory produced by the machines was being sold below its cost and this occurrence had affected the value of...

Certain items of machinery appeared to have suffered a permanent diminution in value. The
inventory produced by the machines was being sold below its cost and this occurrence had
affected the value of the productive machinery. The carrying value at historical cost of these
machines is $290,000 and their net selling price is estimated at $120,000. The anticipated net
cash inflows from the machines are now $100,000 per annum for the next three years. A
market discount rate of 10% per annum is to be used in any present value computations.Certain items of machinery appeared to have suffered a permanent diminution in value. The inventory produced by the machines was being sold below its cost and this occurrence had affected the value of