PR Company pays $10,000 in cash and issues no-par stock with a fair value of $40,000 to acquire all of SX Corporation's net assets. SX's balance sheet at the date of acquisition is as follows: SX Corporation Book Fair value value Current assets Property, plant & equipment, net Identifiable intangible assets Total assets $ 2,000 $ 4,200 10,000 6,000 4,000 14,000 $16,000 Current liabilities $1,600 $2,000 Long-term debt 12,000 11,600 Capital stock 5,000 Retained earnings 8,000 Accumulated other comprehensive income (1,000) Treasury stock (9,600) Total liabilities & equity $16,000 PR's consultants find these items that are not reported on SX's balance sheet: Fair value Potential contracts with new customers $8,000 Advanced production technology 4,000 Future cost savings 2,000 Customer lists 1,000 Outside consultants are paid $200 in cash, and registration fees to issue PR's new stock are $400. The question below relates to the entry or entries PR makes to record the acquisition on its books. Three months after the acquisition, a fire damages SX's equipment, reducing its fair value from $6,000 to $4,000. How does PR report this event? Ignore depreciation a. Loss of $2,000, reported on the income statement b. $2,000 increase in goodwill c. Not reported