In 2014, Azimuth Company Purchased a Small Business for $500

Multiple Choice

In 2014, Azimuth Company purchased a small business for $500 000. The market value of the business's assets were $850 000, and the market value of the liabilities were $400 000. Azimuth recorded goodwill of $50 000 at time of acquisition. At the end of 2015, they measured the goodwill and found it had a remaining value of only $20 000. What will Azimuth have to do at year- end 2015?

A) Record a loss on sale of assets.
B) Record a loss on goodwill.
C) Record a gain in goodwill.
D) Record accumulated depletion.