At December 31, 2019, XYZ Corp was concerned that a material asset might be impaired due to a permanent decline in fair value of similar assets. Relevant information about the asset is:

Original Cost $4,000,000

Accumulated depreciation $1,200,000

Fair Value $2.000.000

The controller compiled the following estimates for the remaining three years of the assets life: year 1, cash inflow, $750,000; cash outflow, $100,000; year 2, cash inflow, $600,000; cash outflow, $100,000; year 3, cash inflow, $500,000; cash outflow, $100,000. Is the asset impaired according to U.S. Generally Accepted Accounting Principles? If so, prepare the required journal entry to record the impairment.