Genius Auto Malls, an IFRS reporter, recently conducted its annual impairment review of the value of its trademark (an indefinite- life intangible), which it currently carries at $ 2,500,000. Evidence exists that the trademark may be impaired. Genius estimates the future cash flows related to the trademark for the next five years as follows:
Future PeriodCash Flow Projection
Year 1 ………………………………$ 800,000
Year 2 ……………………………… 700,000
Year 3 ……………………………... 460,000
Year 4 ……………………………... 140,000
Year 5 ……………………………... 100,000
Total $ 2,200,000
Present Value of Cash Flows $ 1,987,722
The company estimated that the fair value less costs to sell the trademark is $ 1,700,000. Determine if the trademark is impaired. If so, what is the amount of the impairment loss?