During 2016, Tomato Company determined there has been a significant decrease in the market value of its equipment used in its manufacturing process. At December 31, 2016, Tomato compiled the information below:

Original cost of the equipment $500,000

Accumulated depreciation $300,000

Expected net future cash inflows (undiscounted) $175,000

Fair Value of the equipment $125,000

What is the amount of impairment loss that should be reported on Tomatos income statement for the year ended December 31, 2016?

A. $0

B. $25,000

C. $50,000

D. $75,000