Your company rents computers to local businesses and schools. You have 4,600 computers with a book value of $148,500. As a result of changing technology, your computers are more difficult to rent so you must drastically reduce your rental price, which causes a decrease in estimated future cash flows. The fair value of the computers is estimated to be $144,500 because of their outdated technology. Your company should report an asset impairment loss of:

Multiple Choice

• $144,500.

• $148,500.

• $4,000.

• $0.