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Lilliput Boutique owns a small retail outlet in a California coastal town. In the last few years, a significant percentage of the residents have moved further inland after a number of landslides destroyed area homes. The building was purchased on January 1, 1990, at a cost $1,200,000. The building has been depreciated assuming a service life of 40 years, $300,000 salvage value. Annual net cash inflows have averaged $60,000 over the last few years. An independent appraiser estimates the fair value of the property at $450,000. After reviewing the situation, the owners of Lilliput Boutique decided to close the store in January 2020 and sell the property. 1. The property was listed at $475,000 through a local real estate broker on January 2, 2020. The sales agent feels the list price is too high but is willing to make best efforts to negotiate with prospective buyers. Management is prepared to accept a lower offer, if necessary, to complete the sale before Spring 2021. Commissions and other selling costs are expected to be $45,000. The company should A) not record an impairment loss. The recoverable costs exceed the carrying value B) record an impairment loss of $50,000 C) record an impairment loss of $75,000 D) record an impairment loss of $95,000 E) record an impairment loss of $120,000

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