Impairment testing for property and equipment:

On December 31, 2020, Leo Inc. has equipment with a book (acquisition cost less accumulated depreciation) value of $450,000. On that same date, Leo determines that the undiscounted future cash flows expected from this equipment are estimated to be $350,000 and the market value of the equipment is $100,000.

What is the amount of write-down required, if any?

Group of answer choices

No writedown is required

($350,000)

($100,000)

($250,000)