Leonard's Jewelry owns a patent with a carrying value of $50 million.Due to adverse economic conditions,Leonard's management determined that it should assess whether an impairment should be recognized for the patent.The estimated future cash flows to be provided by the patent total $43 million,and its fair value at that point totals $35 million.Under these circumstances,Leonard:

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Leonard would record an impairment loss on the patent equal to the difference between the carrying value and the fair value, which is $15 million ($50 million - $35 million). This is because the estimated future cash flows to be provided by the patent are less than its carrying value, indicating that it is not worth as much as previously believed.

Leonard's Jewelry Owns a Patent with a Carrying Value of $50