1. Lilliput Boutique owns a small retail outlet in a California coastal town. In the last few years, a significant percentage of the residents have moved further inland after a number of landslides destroyed area homes. The building was purchased on January 1, 1990, at a cost $1,200,000. The building has been depreciated assuming a service life of 40 years, $300,000 salvage value. The company's chief financial officer is concerned about impairment. A conservative estimate of future annual net cash flows is $60,000. Lilliput Boutique uses 6% as a discount rate. An independent appraiser estimates the fair value of the property at $450,000. What is the recoverable cost of the property as of December 31, 2019? What should Lilliput Boutique report as the impairment loss, if any in the 2020 financial statements? OA) $600,000; $0 B) $441,605; $75,000 C) $600,000; $75,000 D) $60,000; $75,000