Computing the amount of an impairment loss on tangible long-lived assets. Wildwood Properties owns an apartment building that has a carrying value of $15,000,000 on January 1, 2008. The highway department has decided to construct a new highway near the building, which substantially decreases its attractiveness to tenants. Wildwood Properties estimates that it will now collect rentals from the building of $1,400,000 a year for the next six years and that it will sell the building at the end of that time for $4,000,000. Wildwood Properties will use the present value of expected cash flows to measure the fair value of the building under U.S. GAAP and the recoverable amount under IFRS. An appropriate interest rate to discount cash flows is 10%. Assume that all cash flows occur at the end of the year. Compute the amount of any impairment loss that Wildwood Properties should recognize under U.S. GAAP and under IFRS.