On December 31, an entity analyzed equipment with a net carrying value of $250,000 for impairment. The entity determined the following:

Fair Value : $215,000

Undiscounted future cash flows $240,000

What is the impairment loss that will be reported on the December 31 income statement under U.S. GAAP?

a) $35,000
b) $10,000
c) $25,000
d) $0