Truffle Inc. acquired a patent on January 1, 2018 for $7,800,000. It was expected to have a 10 year life and no residual value. Truffle uses straight-line amortization for its patents. On December 31, 2021, the expected future cash flow from the patent are $518,000 per year for the next six years. The present value of these cash flows, discounted at Truffles market interest rate, is $2,120,000. What amount, if any, of impairment loss will be reported on Truffles 2021 income statement?

• $1,340,000.
• $2,120,000
• $2,560,000
• $4,680,000

I need step-by-step detail. Please don't assume anything. I need to know where all numbers are coming from.

Thank you.