Riverbed Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $440,000. The Johnson Divisions net assets, including the goodwill, have a carrying amount of $790,000. The fair value of the division is estimated to be $720,000. What is the amount of the loss on the impairment to goodwill?

a.

$370,000

b.

$70,000

c.

$440,000

d.

$720,000

e.

$0, there is no impairment