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 as
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 $1,132, including goodwill of $685. Seller's fair value is assessed at $1,095 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $183 and $147, respectively). The following table summarizes current financial information for the Sellers reporting unit:
Carrying
AmountsFair
ValuesTangible assets, net$117$191Recognized intangible assets, net330382Goodwill685?Unrecognized intangible assets0330Total$1,132$1,095
- Determine the amount of any goodwill impairment for Alomar's Sellers reporting unit.
- After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomar's reporting unit Sellers?
Carrying
AmountsFair
ValuesTangible assets, net$117$191Recognized intangible assets, net330382Goodwill685?Unrecognized intangible assets0330Total$1,132$1,095
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