Buyer Company acquired Target Company on January 1. As part of the acquisition, $1,000 in goodwill was recognized; this goodwill was assigned to Buyer's Manufacturing reporting unit. On December 31, it was estimated that the future cash flows expected to be generated by the Manufacturing reporting unit are $350 at the end of each year for the next 10 years. The appropriate interest rate is 10%. The fair values and book values of the assets and liabilities of the Manufacturing reporting unit are as follows:

Make the journal entry necessary to recognize any goodwill impairmentloss.

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Book Values Identifiable assets Goodwill Liabilities $3,500 1,000 2.000 Fair Values $4,000 2,000