Chapter 12, Problem 12.2E

Tangible Asset Impairment Loss. Use the same information from E12-1 except now assume the following cash-flow projections:

Future Period	Cash-Flow Projection
Year 1	$1,450,000
Year 2	850,000
Year 3	400,000
Year 4	400,000
Year 5	250,000
Total	$3,350,000

Required

1. a. Compute the impairment loss for the current year if any.
2. b. Prepare the journal entry to record the impairment loss, if needed.