Flynn Company Purchased a Building for $400,000

Multiple Choice

Flynn Company purchased a building for $400,000. The current book value of the building is $200,000 and the fair market value is $180,000. The sum of future cash flows from the building is $160,000. According to GAAP, the amount of impairment loss that should be recognized is

A) $0
B) $20,000
C) $40,000
D) $120,000