Largest Company acquired Large Company on January 1. As part of the acquisition, $10,000 in goodwill was recognized; this goodwill was assigned to Largest's Production reporting unit. During the year, the Production reporting unit reported revenues of $13,000. Publicly traded companies with operations similar to those of the Production unit had price-to- revenue ratios averaging 1.60. The fair values and book values of the assets and liabilities of the Production reporting unit are as follows:

Make the journal entry necessary to recognize any goodwill impairmentloss.

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Book Values identifiable assets Goodwill Liabilities $21,300 0,000 7,600 Fair Values $20,500 7.600