Destin Company recently acquired several businesses and recognized goodwill in each acquisition. In accordance with SEAS 142, 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:

Carrying Values LO1 Fair Values Sand Dollar Tangible assets

$180,000

$190,000 Trademark 170,000 150,000 Customer list 90,000 100,000 Goodwill 120,000

?

Liabilities Salty Dog

(30,000)

(30,000)

Tangible assets 200,000 200,000 Unpatented technology 170,000 125,000 Licenses 90,000 100,000 Goodwill 150,000

?

Baytowne Tangible assets 140,000 150,000 Unpatented technology

-0-

100,000 Copyrights 50,000 80,000 Goodwill 90,000

?

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 good¬ will impairments.

a. Which of Destin’s reporting units require both steps to test for goodwill impairment?

b. How much goodwill impairment should Destin report tills year?

c. What changes to the valuations of Destin’s tangible assets and identified intangible assets should be reported based on the goodwill impairment tests?