Flynn Company Purchased a Building for $400,000

Multiple Choice

Flynn Company purchased a building for $400,000.At the end of the current year,the book value of the building is $220,000 and its fair value is $180,000.Assuming the building is rented to a tenant,the sum of future cash flows from the rental of the building is expected to be $160,000.What is the amount of impairment loss?

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