Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 had recognized net assets with carrying amounts totaling $1,366, including goodwill of $915. Sellers reporting unit fair value is assessed at $1,181 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $222 and $115, respectively). The following table summarizes current financial information for the Sellers reporting unit:

Carrying Amounts Fair Values
Tangible assets, net $114 $160
Recognized intangible assets, net 337 387
Goodwill 915 ?
Unrecognized intangible assets 0 337

Please help, what did I do wrong?

  1. Determine the amount of any goodwill impairment for Alomars Sellers reporting unit.

  2. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomars reporting unit Sellers?image text in transcribed

X Answer is complete but not entirely correct. Amounts a. a $ $ 618 X b. Goodwill impairment loss Tangible assets, net Goodwill Patent $ 114 $ 297 x | $ 0 Customer list $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Decision Making Approach

Authors: Thomas E. King, Valdean C. Lembke, John H. Smith

2nd Edition

0471328235, 978-0471328230

More Books

Students also viewed these Accounting questions