Allstar Business purchased a corner store building on January 1, 2011, for $5,500,000. The building has been depreciated using the straight line method with a 20-year useful life and 5% residual value. As of January 1, 2017, Allstar Business has converted the building into a Coffee Shop that has Internet usage six days a week. The change in the use of the building , results in Allstar to evaluate the building for possible impairment. Allstar estimates that the building has a remaining useful life of 10 years, that its residual value will be zero, that net cash inflow from the building will be $400,000 per year, and that the current fair value of the building is $2,500,000.

i.) How much is the impairment loss that should be recorded.

ii.) Record depreciation expense for 2017.