Destin Company recently acquired several businesses and recognized goodwill in each acquisition. Destin has allocated the resulting goodwill to its three reporting units: Sand Dollar, Salty Dog, and Baytowne.
In its annual review for goodwill impairment, Destin provides the following individual asset and liability values for each reporting unit:

The overall valuations for the entire reporting units (including goodwill) are $510,000 for Sand Dollar, $580,000 for Salty Dog, and $560,000 for Baytowne. To date, Destin has reported no goodwill impairments.
a. Which of Destin€™s reporting units require both steps to test for goodwill impairment?
b. How much goodwill impairment should Destin report this year?
c. What changes to the valuations of Destin€™s tangible assets and identified intangible assets should be reported based on the goodwill impairmenttests?

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Carrying Values Fair Values Sand Dollar Tangible assets Trademark Customer list Goodwill Liabilities $180,000 170,000 90,000 120,000 (30,000) $190,000 150,000 100,000 30,000) Salty Dog Tangible assets Unpatented technology Licenses Goodwill $200,000 170,000 90,000 150,000 $200,000 25,000 100,000 Baytowne 140,000 Tangible assets Unpatented technology Copyrights Goodwil 150,000 100,000 80,000 50,000 90,000