Augusta Hayward Co

Multiple Choice

Augusta Hayward Co.purchased a building for $800,000.At the end of the current year,the book value of the building is $440,000 and its fair value is $360,000.Assuming the building is rented to a tenant,the sum of future cash flows from the rental of the building is expected to be $320,000.What is the amount of impairment loss?

A) $360,000
B) $40,000
C) $80,000
D) $240,000