King Corporation owns machinery with a book value of $380,000. It is estimated that the machinery will generate future cash flows of $350,000. The machinery has a fair value of $280,000. King should recognize a loss on impairment of

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The impairment loss is calculated as the difference between the book value ($380,000) and fair value ($280,000), which is $100,000. This loss should be recognized in the financial statements.

King Corporation Owns Machinery with a Book Value of $380,000