Fairfield Company determines the following information at year end about a piece of equipment that has a net book value of $75,000. Assume the equipment will not be for sale.

Present value of future expected net cash flows $52,500

Undiscounted future expected cash flows

63,500

The impairment loss is

A.

$11,500

B.

$63,500

C.

$52,500

D.

$22,500