On Jan 1, 2013, Johnson Inc. paid $200,000 to acquire Swanson Inc. At the time of the acquisition Swanson Inc's balance sheet reported total assets of $200,000 and liabilities of $100,000. The fair market value of Swanson Inc's assets was $200,000. The fair market value of its liabilities was $100,000. At the end of 2016, they measured goodwill and found its fair value to be $60,000. Calculate and record the impairment of goodwill.
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