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	$	190,000		$	201,800
Trademark		238,000			212,300
Customer list		126,000			136,200
Goodwill		135,550			?
Liabilities		(33,500	)		(33,500	)
Salty Dog
Tangible assets	$	284,000		$	284,000
Unpatented technology		205,000			158,000
Licenses		115,000			130,700
Goodwill		213,650			?
Baytowne
Tangible assets	$	160,500		$	179,300
Unpatented technology		0			137,250
Copyrights		71,750			103,950
Goodwill		138,500			?

The fair values for each reporting unit (including goodwill) are $631,550 for Sand Dollar, $791,700 for Salty Dog, and $704,500 for Baytowne. To date, Destin has reported no goodwill impairments.

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

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