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 AmountsFair ValuesSand DollarTangible assets$214,000$228,100Trademark192,000165,100Customer list110,250121,050Goodwill173,200?Liabilities(51,250)(51,250)Salty DogTangible assets$295,000$295,000Unpatented technology183,000134,500Licenses94,000108,300Goodwill201,250?BaytowneTangible assets$207,750$220,750Unpatented technology0128,250Copyrights67,500107,200Goodwill135,000?

The fair values for each reporting unit (including goodwill) are $613,000 for Sand Dollar, $748,800 for Salty Dog, and $739,200 for Baytowne. To date, Destin has reported no goodwill impairments.

1. Determine which of Destin's reporting units require both steps to test for goodwill impairment.
2. How much goodwill impairment should Destin report this year?