Sage Corporation's balance sheet includes the following asset: Equipment: $275,000 Accumulated dep

[answerhappygod]

Sage Corporation's balance sheet includes the following
asset:
Equipment:

$275,000
Accumulated depreciation: 85,000
Sage was notified of a significant change in the technology used
to power the equipment and decided to test for impairment.
Sage obtained the following data:
Future
cash flows
(undiscounted):
$125,000
Value in
use
(discounted):
120,000
Fair
value:
160,000
Selling
costs:
8,000
Required:
Assuming Sage follows ASPE, calculate if the asset is impaired,
and prepare any journal entries required. Show your
calculations.