Jung Inc. owns a patent for which it paid $66 million. At the end of Year6, it had recorded cumulative (total over the years) amortization on the patent of $16 million.

Due to adverse economic conditions, Jung's management determined that it should assess whether an impairment should be recognized for the patent. (Hint- remember that we use the PP&E impairment rules for intangibles with determinable lives.)

As of the end of Year6, the estimated undiscounted future cash flows to be provided by the patent total $43 million.

As of the end of Year6, the patent's fair value is $35 million.

Under these circumstances, Jung:

	a.	Would record a $15 million impairment loss on the patent.
	b.	Would record a $31 million impairment loss on the patent.
	c.	Would not record an impairment loss on the patent.
	d.	Would record a $7 million impairment loss on the patent.