Computing the amount of an impairment loss on tangible long-lived assets. Wildwood Properties owns an apartment building that has a book value of $15,000,000 on January 1. Year 14. The highway department has decided to construct a new highway near the building, which substantially decreases its attractiveness to tenants. Wildwood Properties estimates that it will now collect rentals from the building of $ 1 .400.000 a year for the next six years and that it will sell the building at the end of that time for $4,000,000. An appropriate interest rate to discount cash flows for this building is 10 percent. Assume that all cash flows occur at the end of the year.

Compute the amount of any impairment loss that Wildwood Properties should recognize.