WildhorseEnterprises, Inc. operates several stores throughout the western United States. As part of an operational and financial reporting review in a response to a downturn in its markets, the company's management has decided to perform an impairment test on five stores (combined). The five stores' sales have declined due to aging facilities and competition from a rival that opened new stores in the same markets. Management has developed the following information concerning the five stores as of the end of fiscal 2019.

Original cost $39,340,000

Accumulated depreciation $9,890,000

Estimated remaining useful life 4 years

Estimated expected future annual cash flows (not discounted) $3,600,000per year

Appropriate discount rate 6percent

Determine the amount of impairment loss, if any, thatWildhorseshould report for fiscal 2019 and the book value at whichWildhorseshould report the five stores on its fiscal year-end 2019 balance sheet. Assume that the cash flows occur at the end of each year.

Determine the amount of impairment loss, assume that (1) the estimated remaining useful life is 10 years, (2) the estimated annual cash flows are $3,068,570per year, and (3) the appropriate discount rate is7percent.