In March, Year 7, a competitor introduced a new, directly competing product, which resulted in a significant decline in the company's revenues and a decline in its manufacturing capacity needs. The company previously used two manufacturing facilities, but as a result of the decline in demand for its product, the company's second manufacturing facility has been left largely unused since October 1, Year 7. The company is preparing to repurpose the facility in Year 8 to manufacture alternative products and plans to sell the facility in Year 15. Accordingly, the company needs to evaluate the $1,238,000 carrying amount of the facility as of December 31, Year 7. As a result of the evaluation, the company concluded that the carrying value of the facility is not recoverable. The company estimated the fair value of the manufacturing facility using an income approach. The company should recognize a Year 7 impairment loss of $7,000 because FASB ASC 360- 10-35-40 indicates that an impairment loss is required to be measur