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	$	232,000		$	247,100
Trademark		193,000			165,300
Customer list		154,000			169,700
Goodwill		166,550			?
Liabilities		(45,000	)		(45,000	)
Salty Dog
Tangible assets	$	275,000		$	275,000
Unpatented technology		189,000			141,000
Licenses		130,000			143,400
Goodwill		153,500			?
Baytowne
Tangible assets	$	206,250		$	219,150
Unpatented technology		0			157,000
Copyrights		55,000			86,500
Goodwill		92,500			?

The fair values for each reporting unit (including goodwill) are $674,350 for Sand Dollar, $720,400 for Salty Dog, and $765,650 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?