Probst Company acquired a tradename several years ago at a cost of $60,000. The company has never considered the tradename to be impaired. However, at the end of 2007, the company has determined that the tradename is impaired because of a change in market conditions. It estimates that the tradename has a fair value of $40,000 at the end of 2007.

Required

Prepare the journal entry (if any) for Probst Company to record the impairment of its trademark at the end of 2007.