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Can you help me with this question? Thank you so much Today is December 31, 2020, and Don't Be Broke Financial Company is about to
Can you help me with this question? Thank you so much
Today is December 31, 2020, and Don't Be Broke Financial Company is about to perform their year-end Goodwill Impairment testing. Don't Be Broked adopted ASU 2017-04: Simplifying the Goodwill Impairment Test on January 1, 2019. Don't Be Broke has two reporting units, their Automobile Lending reporting unit, and their Personal Loan reporting unit. The book values and fair values of the assets and liabilities of each of these reporting units is provided below: Automobile Lending Reporting Unit: Book Value Fair Value Book Value Fair Value ASSETS $ 88,000,000 $ 86,000,000 LIABILITIES $ 82,000,000 $ 82,000,000 Personal Loan Reporting Unit: Book Value Fair Value Book Value Fair Value ASSETS $ 60,000,000 $ 55,000,000 LIABILITIES $ 54,000,000 $ 54,000,000 The Book Values reported above include $ 15,000,000 of Goodwill in the Automobile Lending Unit, and $ 8,000,000 of Goodwill in the Personal Loan Reporting Unit, while the "fair values of the assets indicated above represent the value of assets Other than Goodwill" (i.e. In the above calculation, Goodwill is assumed to have a Fair Value equal to $ 0). Given the information provided above, please answer the following questions: A. (1) On December 31, 2020, Don't Be Broke estimated that the "fair value of the Automobile Lending Reporting Unit on that date is $ 9,000,000. Based on this estimate, what is the amount of Goodwill for the Automobile Lending reporting unit that will appear on the December 31, 2020 Consolidated Balance Sheet? B. (1) On December 31, 2020, Don't Be Broke estimated that the "fair value of the Personal Loan Reporting Unit was $ 4,700,000. Based on this estimate, what is the amount of Goodwill for the Personal Loan reporting unit that will appear on the December 31, 2020 Consolidated Balance SheetStep by Step Solution
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