Chevron Corporation Data for the year ended December 31, 2023:

Item	Amount
Long-term Investment Cost	$8,000,000
Market Value of Investment	$6,500,000
Sales	$25,000,000
Cost of Goods Sold	$15,000,000
Operating Expenses	$6,000,000

1. Calculate the impairment loss on the investment.
2. Determine the impact on net income due to the impairment loss.
3. Discuss how recognizing the impairment loss affects Chevron’s financial health.
4. Explain the application of the Conservatism Principle in recognizing impairment losses.