An impairment loss is indicated because the estimated undiscounted sum of future cash flows of $27 million is less than the book value of $32.1 million.
The amount of the loss to be reported is calculated using the estimated fair value rather than the undiscounted future cash flows:

Question

Quizplus · Accepted Answer

The Answer of An impairment loss is indicated because the estimated undiscounted sum of future cash flows of $27 million is less than the book value of $32.1 million.
The amount of the loss to be reported is calculated using the estimated fair value rather than the undiscounted future cash flows:

An Impairment Loss Is Indicated Because the Estimated Undiscounted Sum