Cardinal Construction has a long$-$term asset with the following year$-$end information:

Carrying Amount $($Net Book Value$)=$$$475,000$

Value in Use $=$$$425,000$

Fair Value $=$ $$410,000$

Is Cardinal required to impair this asset? If so$,$ what amount of loss will be recorded?

No$,$ an impairment of this asset is not required because the future net cash flows are greater than the fair value of the asset.

Yes, Cardinal will record an impairment loss of $$50,000.$

Yes, Cardinal will record an impairment loss of $$65,000.$

No$,$ an impairment of this asset is not required because the carrying amount $($net book value$)$ is less than the future cash flows.