The Pentella Company acquired Susan Company on January 1. As part of the acquisition, $10,000 in goodwill was recognized; this goodwill was assigned to Pentella Production reporting unit. During the year, the Production reporting unit reported revenues of $13,000. Publicly traded companies with operations similar to those of the Production unit had price-to-revenue ratios averaging 1.60. The fair values and book values of the assets and liabilities of the Production reporting unit are as follows:

The Pentella Company acquired Susan Company on January 1. As part of the acquisition, $10,000 in goodwill was recognized; this goodwill was assigned to Pentella Production reporting unit. During the year, the Production reporting unit reported revenues of $13,000. Publicly traded companies with operations similar to those of the Production unit had price-to-revenue ratios averaging 1.60. The fair values and book values of the assets and liabilities of the Production reporting unit are as follows: Fair values Book values 21,300 20,500 Identifiable assets Goodwill 10,000 Liabilites 7,600 7,600 Required. a. What is the amount of the impairment loss, if any? b. Record the journal entry if there is any impairment loss