1. Company Y is purchased by Company X, at an acquisition cost that is $100,000 greater than the fair value of the identifiable net assets acquired. One of the assets acquired is a building, originally valued at $37,000 at the date of the purchase. Six months after the acquisition, it is discovered that the building was really only worth $25,000 at the date of acquisition. What entry is made to reflect this new information?

a. A debit of $12,000 to Loss on Impairment

b. A debit of $100,000 to Goodwill

c. A credit of $12,000 to Gain from Bargain Purchase

d. A debit of $12,000 to Goodwill