Lilliput Boutique owns a small retail outlet in a California coastal town. In the last few years, a significant percentage of the residents have moved further inland after a number of landslides destroyed area homes. The building was purchased on January $1,1990,$ at a cost $$1,200,000.$ The building has been depreciated assuming a service life of $40$ years, $$300,000$ salvage value. Annual net cash inflows have averaged $$60,000$ over the last few years. An independent appraiser estimates the fair value of the property at $$450,000.$ After reviewing the situation, the owners of Lilliput Boutique decided to close the store in January $2020$ and sell the property.

The property was listed at $$475,000$ through a local real estate broker on January $2,2020.$ The sales agent feels the list price is too high but is willing to make best efforts to negotiate with prospective buyers. Management is prepared to accept a lower offer, if necessary, to complete the sale before Spring $2021.$ Commissions and other selling costs are expected to be $$45,000.$

The company should $\_\_\_\_\_\_\_\_\_\_\_\_\_.$

A$)$ not record an impairment loss. The recoverable costs exceed the carrying value.

B$)$ record an impairment loss of $$50,000$

C$)$ record an impairment loss of $$75,000$

D$)$ record an impairment loss of $$95,000$

E$)$ record an impairment loss of $$120,000$

F$)$ record an impairment loss of $$225,000$