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7 Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1,
7 Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. 5 points In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: eBook Carrying Amounts RU-1 RU-2 RU-3 $242,000 $239,000 $156,000 216,000 133,500 249,000 102,500 50,750 181,500 199,400 101,500 (52,500) Tangible assets Trademark Customer list Unpatented technology Licenses Copyrights Goodwill Liabilities Print References The total fair values for each reporting unit (including goodwill) are $697,400 for RU-1, $753,650 for RU-2, and $689.900 for RU-3. To date, Purchase has reported no goodwill impairments. How much goodwill impairment should Purchase report this year for each of its reporting units? RU-1 RU-2 RU-3 Goodwill impairment loss $ 0
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