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	$	247,000		$	261,900
Trademark		187,000			164,400
Customer list		134,250			153,550
Goodwill		189,750			?
Liabilities		(53,750	)		(53,750	)
Salty Dog
Tangible assets	$	294,000		$	294,000
Unpatented technology		194,000			125,250
Licenses		131,500			142,500
Goodwill		196,700			?
Baytowne
Tangible assets	$	182,000		$	201,300
Unpatented technology		0			156,750
Copyrights		74,000			108,000
Goodwill		94,000			?

The fair values for each reporting unit (including goodwill) are $694,850 for Sand Dollar, $766,750 for Salty Dog, and $754,050 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?

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

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

Sand Dollar
Salty Dog
Baytowne

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