AM initially reported $3.2 million of goodwill on its consolidated balance sheet, $2 million relating to the acquisition of ZD and $1.2 million relating to Hope. On December 31, 2019 fair values are reported in the amounts of $11,339,000 and $14,070,000 for ZD and Hope, respectively.

ZD Balance Sheet Dec 31. 2010

Assets

Current asset 25,000,000

PP&E 15,000,000

Liabilities

Current L 21,000,000

Bond Payable 8,000,000

Stockholder Equity

Common Stock 8,000,000

Retained Earning 3,000,000

Hope Balance Sheet Dec 31. 2010

Assets

Current asset 16,500,000

PP&E 11,500,000

Liabilities

Current L 13,800,000

Bond Payable 6,200,000

Stockholder Equity

Common Stock 10,000,000

Retained Earning (2,000,000)

PP&E Info

ZD: Book value $15,000,000 Fair Market Value $14,585,000 Sum of undiscounted future cash flow $17,280,000

Hope: Book value $11,500,000 Fair Market Value $16,400,000 Sum of undiscounted future cash flow $17,770,000

Inventory Info

ZD: dollar value lifo cost= $5,000,000

Replacement cost= $4,100,000

Net Realizable value= $6,000,000

Net Realizable value less normal profit margin = $4,800,000

Hope: dollar value lifo cost= $3,700,000

Replacement cost= $3,850,000

Net Realizable value= $4,600,000

Net Realizable value less normal profit margin = $3,300,000

Question: what the carrying value of inventory, Property, plant and equipment? Test goodwill for impairment for both ZD and Hope