In 2012,Azimuth Company Purchased a Small Business for $500,000

Multiple Choice

In 2012,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 2013,they measured the goodwill and found it had a remaining value of only $20,000.What will Azimuth have to do at year-end 2013?

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