Genius Auto Malls recently conducted its annual impairment review of the value of its trademark (an indefinite- life intangible asset), which it currently carries at $ 2,500,000. Evidence indicates that the trademark may be impaired. Genius estimates the future cash flows related to the trademark for the next five years as follows:
Future Period Cash 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
The company estimates that the fair value of the trademark is $ 1,700,000. Determine if the trademark is impaired. If so, what is the amount of the impairment loss?