Acme Co., a consolidated enterprise, conducted an impairment review for each ofits reporting units. One particular reporting unit, Martel, emerged as a candidate for possible goodwill impairment. Martel has recognized net assets of S780, including goodwill of $500. Martel’s fair value is assessed at $650 and includes two internally developed unrecognized intangible assets (a patent and a cus¬ tomer list with fair values of $150 and $50, respectively). The following table summarizes current financial information for the Martel reporting unit:

Carrying LO1 Fair Amounts Values Tangible assets, net

$ 80

$110 Recognized intangible assets, net 200 230 Goodwill 500

?

Unrecognized intangible assets

-0-

200 Total

$780

$650

a. Show the two steps to determine the amount of any goodwill impairment for Acme’s Martel reporting unit.

b. After recognition of any goodwill impairment loss, what are the reported book values for the fol¬ lowing assets ofAcme’s reporting unit Martel?

• Tangible assets, net.

• Goodwill.

• Customer list.

• Patent.