In 2018,a company purchased a small business for $250,000.The market value of the small business's assets was $400,000,and the market value of the liabilities was $200,000.The company recorded goodwill of $50,000 at the time of acquisition.At the end of 2019,it measured goodwill and found it had a remaining fair value of only $20,000.At year-end 2019,the company will ________.

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The company will record an impairment loss in the amount of the decrease in fair value of goodwill from $50,000 to $20,000, which is $30,000 ($50,000 - $20,000). Goodwill impairment occurs when the fair value of the reporting unit (in this case, the small business) is less than its carrying value (which includes goodwill). Therefore, the company will need to recognize the impairment loss on its income statement and reduce the carrying amount of goodwill on its balance sheet.

In 2018,a Company Purchased a Small Business for $250,000