Bostick Co. acquired the assets of Belk Co. for $1,200,000 in Year 1. The estimated fair market value of the assets at the acquisition date was $1,000,000. Goodwill of $200,000 was recorded at acquisition. In Year 2, because of negative publicity, one-half of the goodwill acquired from Belk Co. was judged to be permanently impaired.

Required
How will Bostick account for the impairment of the goodwill?