Answer (D) is correct. A long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may
not be recoverable. The carrying amount is not recoverable when it
exceeds the sum of the undiscounted cash flows expected to result from
the use and disposition of the asset (asset group). If the carrying amount
is not recoverable, an impairment loss is recognized equal to the excess
of the carrying amount over the fair value.