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	$	224,000		$	235,300
Trademark		198,000			177,600
Customer list		116,250			136,050
Goodwill		164,800			?
Liabilities		(43,000	)		(43,000	)
Salty Dog
Tangible assets	$	288,000		$	288,000
Unpatented technology		175,000			110,000
Licenses		137,500			154,400
Goodwill		232,050			?
Baytowne
Tangible assets	$	202,000		$	216,800
Unpatented technology		0			132,750
Copyrights		52,000			85,300
Goodwill		91,500			?

The fair values for each reporting unit (including goodwill) are $645,450 for Sand Dollar, $790,400 for Salty Dog, and $671,850 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?