Computing the amount of impairment loss. Tillis Corporation acquired the assets of Kieran Corporation (Kieran) on January 1, 2006, for $2,400,000. On this date the fair values of the assets of Kieran were as follows: land, $400,000; building, $600,000; equipment, $900,000. On June 15, 2008, a competitor introduced a new product that will likely singnificantly affect future sales of Kieran€™s products. It will also affect the value of Kieran€™s property, plant, and equipment because of their specialized nature in producing Kieran€™s existing products. The following information relates to the property, plant, and equipment of Kieran on June 15, 2008:

The fair value of Kieran as an entity on June 15, 2008, is $2,200,000.
Compute the amount of impairment loss recognized on each of Kieran€™s property, plant, and equipment and on goodwill on June 15, 2008, under U.S.GAAP.

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Fair Value Carrying Undiscounted Value Cash flows $ 550,000 Land $575,000 $550,000 580,000 800,000 Building.. Equipment . 580,000 600,000 1,200,000 950,000