Question
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers has recognized net assets of $1,110, including goodwill of $740. Sellers fair value is assessed at $912 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $181 and $101, respectively). The following table summarizes current financial information for the Sellers reporting unit:
Carrying Amounts | Fair Values | ||||
Tangible assets, net | $ | 88 | $ | 121 | |
Recognized intangible assets, net | 282 | 349 | |||
Goodwill | 740 | ? | |||
Unrecognized intangible assets | 0 | 282 | |||
Total | $ | 1,110 | $ | 912 | |
-
Determine the amount of any goodwill impairment for Alomars Sellers reporting unit.
-
After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomars reporting unit Sellers?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started