impairment

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    Jv1796
    Participant

    Marjorie, Inc. acquired a machine for $320,000 on August 31, year 1. The machine has a four-year life, a $50,000 salvage value, and was depreciated using the straight-line method. On May 31, year 3, a test for recoverability reveals that the expected net future undiscounted cash inflows related to the continued use and eventual disposal of the machine total $150,000. The machine's actual fair value on May 31, year 4, is $135,000, with no salvage value. Assuming a loss on impairment is recognized May 31, year 4, what is Marjorie's depreciation expense for June year 3?
    $6,352
    $5,000
    $4,500
    $3,148

    help please

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