Illumination, Inc. owns a factory in Wisconsin that makes light bulbs. During 2020, due to increased competition from LED light bulb manufacturers the company determined an impairment test was appropriate. Management prepared the following information: (in millions)

Cost	$345
Accumulated Depreciation	$85
Estimated future cash flows	$225
Estimated fair value of the factory assets	$175

a. Determine the amount of the impairment loss (if any) that Illumination should recognize in 2020. Clearly label and show your work.

b. Assume that the future cash flows were $275 (instead of $225) determine the amount of the impairment loss (if any) that Illumination should recognize in 2020. Clearly label and show your work.