A company has some bottling equipment which cost $8.5 million,has a net book value of $4.1 million,estimated future cash flows of $3.7 million,and a fair value of $3.1 million. How much is the asset impairment loss?

A) $5.4 million.
B) $4.1 million.
C) $0.4 million.
D) $1.0 million.

Asset Impairment Loss

A sudden write-down or devaluation of an asset to its fair market value which is lower than its currently recorded cost, reflecting unexpected decreases in value.

Future Cash Flows

Estimated incoming and outgoing cash transactions expected to occur in the future.

Net Book Value

The value of an asset after accounting for depreciation or amortization, representing its residual value on the balance sheet.