Use the Following Data to Solve the Following Questions:
-Frontier $\begin{array}{llcc}\text {Year 1}&\text {Year 2}&\text {Year 3}\\\hline \$ 4,000& \$ 6,000&\$ 7,000 \end{array}$

Multiple Choice

Use the following data to solve the following questions:
-Frontier Landscaping owns some equipment that is used in their operations. Management estimates that the equipment will last another three years and will generate the following future cash flows at the end of each year. $\begin{array}{llcc}\text {Year 1}&\text {Year 2}&\text {Year 3}\\\hline \$ 4,000& \$ 6,000&\$ 7,000 \end{array}$
Assuming Frontier Landscaping's equipment has a carrying value of $16,000, how much of an impairment loss must Frontier record?

A) none as there is no impairment.
B) $383
C) $6,606
D) $2,518