June 16 impairment question

Patent at cost is 7.5m, acc amort. is 3m

Study at year end gives present value of net cash flow as 3.25m and an offer received to buy the patent for 3.4m

what is the impairment loss?

I got 1.1m impaired (4.5m carrying less recoverable amount 3.4) ie new carrying amount

but the answer is 0.35 impairment loss with a carrying amount of 3.75m prior to impairment

why is the carrying amount prior to impairment 3.75m? Is it because it is reviewed at the end of the year rather than at the begining therefore the current year amortisation needs to be taken off before the impairment calc?