On May 31, 2021, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition:

Current Assets: $900,000

Current Liabilities: 600,000

Noncurrent Assets 2,700,000

LT Liabilities 500,000

Stockholders Equity 2,500,000

total Assets 3,600,000

total liabilities and stockholders equity 3,600,000

It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000. At December 31, 2021, Hall reports the following balance sheet information:

Current assets: $ 800.000

Noncurrent assets (including goodwill recognized in purchase): 2,400,000

Current liabilities: (700.000)

Long-term liabilities: (500.000)

Net assets: $2,000,000

It is determined that the fair value of the Hall division is $2,200,000.

Alternatively, assume that the fair value of the Hall division is $1,400,000. Prepare the journal entry to record the impairment loss, if any, on December 31, 2021. a. no impairment

b. Loss on impairment-Goodwill 400.000 Goodwill 400.000 c. Loss on impairment-Goodwill 600.000 Goodwill 600.000

d. Loss on impairment-Goodwill 800.000 Goodwill 800.000