(Solution) - Sumrall Corporation owns machinery that was purchased 20 years ago -(2025 Original AI-Free Solution)

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Sumrall Corporation owns machinery that was purchased 20 years ago. The machinery, which originally cost $ 2,000,000, has been depreciated using the straight- line method using a 40- year useful life and no salvage value and has a current carrying amount of $ 1,000,000 and a current fair value of $ 800,000. Sumrall estimates that it would incur selling costs of $ 10,000 if it sold the machine and that the present value of the future cash flows from the machine is $ 820,000. Under IFRS, Sumrall should record an impairment loss associated with the machinery of:
a. $ 0
b. $ 180,000
c. $ 200,000
d. $ 210,000