Erie Corporation owns machinery with a book value of $2,200,000. It is estimated that the machinery will generate future cash flows of $1,995,000. The machinery has a fair value of $1,915,000. The journal entry to record the impairment loss will ... (a) record a discontinued operations loss of $80,000. (b) increase the asset's Accumulated Depreciation account by $285,000. (c) reduce income from continuing operations by $205,000. (d) include a $285,000 credit to the asset account.
