Final answer:
An impairment loss occurs when the carrying amount of an asset exceeds its recoverable amount. In this case, the calculated impairment loss for the machine is $80,000, but none of the provided options match this value, suggesting a potential error in the question.
Step-by-step explanation:
To calculate the impairment loss for Robertson Inc.'s machine, we must compare the carrying amount of the machine with the recoverable amount. The carrying amount is the cost of an asset less any accumulated depreciation. The recoverable amount is the higher of fair value less costs to sell and the asset's value in use. Since there is no active market for the machine and the company does not plan to dispose of it, we consider the discounted future net cash flows as the value in use, which is $140,000.
First, we calculate the depreciation up to the impairment review date. The machine was bought for $400,000 with a salvage value of $40,000 and a useful life of 20 years. By July 1, 2012, which is halfway through its useful life, the accumulated depreciation would be ((400,000 - 40,000) / 20) * 10.5 = $180,000. Therefore, the carrying amount of the machine on July 1, 2012, is $400,000 - $180,000 = $220,000.
Since the carrying amount ($220,000) is higher than the value in use ($140,000), an impairment loss of $220,000 - $140,000 = $80,000 should be recorded. However, none of the provided options matches this calculation. If this is an error and $80,000 should indeed be the correct answer, it would be essential to check the question for any mistakes or reach out for clarification.