Your company rents computers to local businesses and schools. You have 2,600 computers with a book value of $169,500. 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 The fair value of the computers is estimated to be $135,000 because of their outdated technology. Your company should report an asset impairment loss of:

$135,000.

$169,500.

$34,500.

$0