The following information is available for Brickley Company's patents:

Cost.

Book Value.

$$3,440,000$

Expected future net cash flows

$$1,920,000$

Fair value

$$1,600,000$

$$1,300,000$

Brickely would record a loss on impairment of:

$$620,000$

$$320,000$

$$1,920,000$

$$1,840,000$