What is the amount of the impairment loss

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Question - On July 1, 20X1 Semiconductor Corp. (SC) purchased a storage facility for $5,000,000 and began depreciating it over 20 years to a nil residual value. SC uses the cost model to account for the facility. At the end of 20X3, there is an indication that the facility may be impaired. An appraisal reveals that the fair value of the building has decreased to $4,000,000. Costs to sell are $20,000. A discounted cash flow valuation results in a value in use of $4,300,000. Is the asset is impaired? If so, what is the amount of the impairment loss?

Reference no: EM133062571

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