On July 1, Ashtabula Corp. purchases 100% of Blasdell Company for $2.860 million. At the time of acquisition, the fair market value of Blasdells tangible net assets (excluding goodwill) is $2.39 million. Ashtabula ascribes the excess of $468,000 to goodwill. During the first half of the year, the fair value of Blasdell declines to $2.548 million and the fair value of Blasdells tangible net assets is estimated at $2.236 million as of December 31. This decline is deemed permanent. What impairment charge, if any, should Ashtabula report at December 31?

Select one:

a. $0

b. $312,000

c. $156,000

d. None of these are correct

e. $468,000