A real estate company, CBRE Group, has the following information for the year ended December 31, 2023:

• Long-term investment cost: $5,000,000
• Market value of investment: $4,200,000
• Sales: $15,000,000
• Cost of Goods Sold: $9,000,000
• Operating Expenses: $3,000,000
• Calculate the impairment loss on the investment.
• Determine the impact on net income due to the impairment loss.
• How would the financial statements be affected if the investment was not written down?
• Discuss the application of the Conservatism Principle in recognizing impairment losses.
• How should the company record the impairment loss?