The GW Co. is owed $1,000,000 by Mason, Inc. under an 8% note with three years remaining to maturity. The prior year of interest was unpaid. GW believes there is a 30% chance that Mason will fail to pay GW all amounts that GW is owed. In that 30% case, GW believes it will only receive amounts equal to a present value of $880,000.

If GW is reporting under ASU 2016-13 and therefore using the CECL model, it would recognize an impairment loss of:

$0 $60,000 $200,000 $220,000