The answer is D but I dont know how to get to that answer.

Kyle Corporation is a publicly traded enterprise. Kyle uses the cost model to account for all of its non-current assets. On January 1, Year 1, Kyle purchased machinery for $1,200,000. The machine was expected to have a useful life of 5 years and a salvage value of $200,000. Kyle accounts for its machinery using the cost model. Kyle tests its machinery for impairment and records its depreciation every December 31. On December 31. Year 1, Kyle recorded an impairment loss of $100,000 on its machinery after recording depreciation. The machinery was estimated to have a useful life of 4 years from this date. On December 31, Year 2, Kyle recorded its depreciation expense. The recoverable amount of the assets on the date was $740,000. Which of the following statements describes Kyle's required course of action with respect to any impairment losses or reversals as at December 31, Year 2? a) No adjustment to the equipment is required. b) An impairment reversal of $100,000 is required. c) An impairment reversal of $125,000 is required. d) An impairment reversal of $65,000 is required