Assume that a company named Whatsup was purchased for $10 billion two years ago. At the time of the acquisition Whatsup held unpatented technology that allowed users to "send" text messages in one language that would then be "received" by the addressee in a different language. The original purchase price allocated $8 billion to the unpatented technology. Two years after the acquisition the carrying value of this asset was $6.5 billion due to amortization. Unfortunately, the technology recently was found to provide erroneous translations and revenues have declined by 40%. It has been concluded that a triggering event has taken place. The company estimates that the present value of the future net cash flow from this technology is $5.0 billion. Which of the following comments best fits this circumstance?

A. More information is needed here related to the Total Enterprise value of the reporting unit and carrying value for the assets of the reporting unit. The impairment test rules for amortizable assets require that the fair value of the Total Enterprise of the reporting unit be compared to the carrying value of the assets of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the assets, there is no impairment of the assets within that unit.

B. The company needs to consider more data from the projected net cash flows from the unpatented technology in order to assess whether the asset category has failed the recoverability test.

C. The value of a unpatented technology would be included in the category "Goodwill" and thus the appropriate impairment test would focus on the goodwill impairment rules.

D. The unpatented technology carrying value should be written down through an impairment charge of $1.5 billion.