In the first quarter of the fiscal year, Brace Company discovers that an asset is impaired and the asset will need to be written down by \($4\) million. Which of the following statements is correct?

(a) Brace Company can write down the asset by \($4\) million when it prepares its annual financial statements.

(b) Brace must write off the \($4\) million by writing off \($1\) million in each quarter’s financial statements in the year that it discovered that the asset was impaired by \($4\) million.

(c) Brace must write down the asset by \($4\) million in the first quarter’s quarterly financial statements.

(d) Brace can write down the asset by \($4\) million evenly over three years, beginning in the year that it discovered that the asset was impaired.