True Sound Wireless, Inc. acquired Clarity Networks, Inc. in 2015. The carrying amount of the investment on the balance sheet is reported as $700 million, including goodwill of $200 million. In performing its annual impairment test in 2016, True Sound estimates that the fair market value of Clarity Network's assets and liabilities, including identifiable intangible assets, to be $600 million, and estimates goodwill is impaired by $100 million.
What effect, if any, will this analysis have on True Sound's financial statements?

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The Answer of True Sound Wireless, Inc. acquired Clarity Networks, Inc. in 2015. The carrying amount of the investment on the balance sheet is reported as $700 million, including goodwill of $200 million. In performing its annual impairment test in 2016, True Sound estimates that the fair market value of Clarity Network's assets and liabilities, including identifiable intangible assets, to be $600 million, and estimates goodwill is impaired by $100 million.
What effect, if any, will this analysis have on True Sound's financial statements?