Coronado Industries bought a machine on January 1, 2011 for $797000. The machine had an expected life of 20 years and was expected to have a salvage value of $77000. On July 1, 2021, the company reviewed the potential of the machine and determined that its future net cash flows totaled $407000 and its fair value was $292000. If the company does not plan to dispose of it, what should Coronado record as an impairment loss on July 1, 2021?

$0

$127000

$12000

$38000