Gibbon Corp

Gibbon Corp., a Canadian public corporation, owns equipment for which the following year-end information is available: Which of the following best describes the proper accounting treatment for Gibbon's equipment?

A) It is not impaired and a loss should not be recognized.
B) It is impaired and a loss must be recognized.
C) It is not impaired, but a loss must be recognized.
D) It is impaired and a loss must be recognized, but the loss but may be reversed in future periods.