Problem 1-Impairment of PPE Bateman Company purchased a convenience store building on January 1, 2011, for a 6,500,000. The building has been depreciated using the straight-line method with a 20-year useful life and 5% residual value. As of January 1, 2017, Bateman has converted the building into an Internet Learning Center where classes on Internet usage will be conducted six days a week. Because of the change in the use of the building, Bateman is evaluating the building for possible impairment. Bateman estimates that the building has a remaining useful life of 10 years, that its residual value will be zero, that net cash inflow from the building will be $400,000 per year, and that the current fair value of the building is $2,500,000. Required. a. How much impairment loss should be recorded? b. Record depreciation expense for 2017