Refer to the situation described in BE7–21. Assume the sum of estimated future cash flows is $32 million instead of $38 million. What amount of impairment loss should Vegetarian Delights record?

Data from in BE7-21

Vegetarian Delights has been experiencing declining market conditions for its specialty foods division. Management decided to test the operational assets of the division for possible impairment. The test revealed the following: book value of the division’s assets, $33.5 million; fair value of the division’s assets, $30 million; sum of estimated future cash flows generated from the division’s assets, $38 million. What amount of impairment loss, if any, should Vegetarian Delights record?