In 2015, a Company Purchased a Small Business for $250,000

Multiple Choice

In 2015, 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 2016, it measured the goodwill and found it had a remaining fair value of only $20,000. At year-end 2016, the company will:

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