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Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management...

Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division for possible impairment. The test revealed the following: book value of division’s assets, $28.5 million; fair value of division’s assets, $22.0 million; undiscounted sum of estimated future cash flows generated from the division’s assets, $29.0 million.

What amount of impairment loss should C&R recognize?

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