The following information concerns Franklin Inc.s stamping machine:

Acquired: January 1, 2010 Cost: $20 million Depreciation: straight-line method Estimated useful life: 9 years Salvage value: $2 million

As of December 31, 2016, the stamping machine is expected to generate $1,200,000 per year for three more years and will then be sold for $2,000,000. The stamping machine is

a) Impaired because expected salvage value has declined.

b) Not impaired because annual expected revenue exceeds annual depreciation

c) Impaired because its book value exceeds expected future cash flows.

d) Not impaired because it continues to produce revenue.