: Destin Company recently acquired several businesses and recognized goodwill in each acquisition. Destin has allocated the resulting goodwill to its three reporting units: Sand Dollar, Salty Dog, and Baytowne. Destin opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current year assessment of goodwill, Destin provides the following individual asset and liability values for each reporting unit: Carrying Amounts ''S Fair Values $ 181,000 197,000 138,000 186,600 (44,500) $ 191, 100 171,100 150,000 (44,500) Sand Dollar Tangible assets Trademark Customer list Goodwill Liabilities Salty Dog Tangible assets Unpatented technology Licenses Goodwill Baytowne Tangible assets Unpatented technology Copyrights Goodwill $ 246,000 234,000 91,500 206,950 $ 246,000 172,750 109,300 $ 186,000 $ 202,500 135,750 107,500 73,500 134,500 The fair values for each reporting unit (including goodwill) are $632,700 for Sand Dollar, $743,050 for Salty Dog, and $748,750 for Baytowne. To date, Destin has reported no goodwill impairments. a. Determine which of Destin's reporting units require both steps to test for goodwill impairment. b. How much goodwill impairment should Destin report this year