Presented below is the net assets information related to

Qameh Division of Mario Bakery on December 31, 2020.

Book Value Fair Value

Cash $50,000 $50,000

Receivables 40,000 30,000

Merchandise Inventory 60,000 60,000

Land 250,000 320,000

Equipment (net) 25,000 17,000

Patent 25,000 25,000

Goodwill 270,000 X

Payables 40,000 40,000

Mortgage payables 135,000 150,000

Bonds payable 155,000 138,000

It is determined that the fair value of Qameh Division is $300,000. The journal entry to record the impairment of goodwill at December 31, 2020 is

a.

Debit Loss on impairment for $90,000 and credit Goodwill for $90,000.

b.

Debit Loss on impairment for $174,000 and credit Goodwill for $174,000.

c.

Debit Loss on impairment for $144,000 and credit Goodwill for $144,000.

d.

Debit Loss on impairment for $126,000 and credit Goodwill for $126,000.