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			Fair Values
Sand Dollar
Tangible assets	$	227,000		$	243,400
Trademark		228,000			203,900
Customer list		123,750			137,650
Goodwill		135,000			?
Liabilities		(41,250	)		(41,250	)
Salty Dog
Tangible assets	$	212,000		$	212,000
Unpatented technology		251,000			203,500
Licenses		110,000			127,300
Goodwill		202,900			?
Baytowne
Tangible assets	$	158,500		$	175,900
Unpatented technology		0			156,000
Copyrights		74,500			107,000
Goodwill		108,500			?

The fair values for each reporting unit (including goodwill) are $654,700 for Sand Dollar, $750,800 for Salty Dog, and $760,900 for Baytowne. To date, Destin has reported no goodwill impairments.

a.Determine which of Destins reporting units require both steps to test for goodwill impairment.

b.How much goodwill impairment should Destin report this year?

a.

Determine which of Destins reporting units require both steps to test for goodwill impairment.

Sand Dollar
Salty Dog
Baytowne

b.

How much goodwill impairment should Destin report this year? (If any of the reporting units do not require both steps to test for goodwill, select NA from the dropdown list.)

Sand Dollar
Salty Dog
Baytowne