Sheffield Corp. bought a machine on January 1, 2008 for $814000. The machine had an expected life of 20 years and was expected to have a salvage value of $82000. On July 1, 2018, the company reviewed the potential of the machine and determined that its future net cash flows totaled $408000 and its fair value was $273000. If the company does not plan to dispose of it, what should Sheffield record as an impairment loss on July 1, 2018?

A. $0

B. $21700

C. $40800

D. $156700