Yuan Inc. has a large piece of machinery, and management has determined there is potential impairment. This piece of machinery has independent cash inflows. The following information relates to the machine:

• Net book value is $32 million.
• The machine could be sold for $13 million less a 10% commission.
• If the company was forced to sell immediately, the proceeds would likely be $10 million.
• If the machine continues to be used in production, it is anticipated to generate $8 million of cash flows for the next five years. It would require annual maintenance costs of $600,000 a year. The equipment could be sold for $100,000 at the end of the five years.
• Assume Yuan has a discount rate of 10%.

(PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided. Round time value factor to 5 decimal places.) Required: Is the machine impaired?

• Yes

• No

If so, what is the amount of the impairment loss? (Enter answer in whole dollars, not in million.)