The Stevens Co. has suffered losses in its film developing division for the last two years. On 12/31/10, the controller decided that he would need to apply the impairment test to film developing equipment and make any required adjustments. He gathered the following information and determined that the asset was impaired: Balance in the Equipment account = $400,000 Balance in Accumulated Depreciation = $300,000 Future value of cash flows associated with the asset = $75,000 Fair value of asset on 12/31/10 = $60,000. Why is the asset considered to be "impaired?" A. Cost of equipment ($400,000) exceeds future cash flows ($75,000) B. Book value of the equipment ($100,000) exceeds future cash flows ($75,000) C. Book value of the equipment $100,000) exceeds fair value ($60,000) D. Fair value of asset ($60,000) is less than future cash flows ($75,000)