1. Weaver Corporation purchased Merando Company 3 years ago and at that time recorded goodwill of $720,000. The Division's net identifiable assets, including the goodwill, have a carrying amount of $1,200,000. The fair value of the division is estimated to be $1,100,000. Which of the following is a true statement regarding the journal entry to record impairment of the goodwill.

   		The journal entry should include a loss on impairment of $380,000.
   		Goodwill is not impaired, so no journal entry is needed.
   		The journal entry should include a loss on impairment of $480,000.
   		The journal entry should include a loss on impairment of $100,000.