Buyer Company acquired Target Company on January 1. As part of the acquisition, $2,000 in goodwill was recognized; this goodwill was assigned to Buyer's Manufacturing reporting unit. On December 31, it was estimated that the future cash flows expected to be generated by the Manufacturing reporting unit are $700 at the end of each year for the next 10 years. The appropriate interest rate is 10%. The fair values and book values of the assets and liabilities of the Manufacturing reporting unit are as follows:
______________________________________Book Values __________Fair Values
Identifiable assets . . . . . . . . . . . . . . . . . . . . . . . . $7,000 ........................ $8,000
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 ............................... ?
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 ........................... 4,000
Make the journal entry necessary to recognize any goodwill impairment loss.