Destin Corporation acquired Beltran Corporation on January 1, 2014, at a cost of $75 million. Beltran consisted of three identifiable reporting units, designated X, Y and Z. Relevant data for the acquisition are as follows: Total Unit x Unit y Unit Identifiable 60,000,000 32,000,000 20,000,000 8,000,000 Liabilities 25,000,000 18,000,000 6,000,000 1,000,000 Fair Value of reporting unit 50,000,000 30,000,000 15,000,000 In addition, existing reporting unit J is expected to benefit from the acquisition, such that its fair value increases by $20,000,000. Unit J has a carrying value of $70,000,000. Assume qualitative assessment at December 31, 2014, indicates it is more likely than not that book value exceeds fair value for all reporting units, and Destin proceeds with the qualitatively test of goodwill impairment. On December 31, 2014, the following amounts were estimated for the four reporting units: Unit x Unit y Unit z Unit j Fair value of reporting unit 30,000,000 15,000,000 12,000,000 75,000,000 Fair value of indentifiable net assets 23,000,000 6,000,000 4,000,000 58,000,000 Book value 34,000,000 20,000,000 10,000,000 72,000,000 Required: 1. Calculate the total goodwill and its allocation to business units at January 1, 2014 2. Calculate any impairment of goodwill at December 31, 2014

Destin Corporation acquired Beltran Corporation on January 1, 2014, at a cost of $75 million. Beltran consisted of three identifiable reporting units, designated X, Y and Z. Relevant data for the acquisition are as follows: Identifiable Liabilities Fair Value of reporting unit Total 60,000,000 25,000,000 Unit x 32,000,000 18,000,000 50,000,000 Unit y 20,000,000 6,000,000 30,000,000 Unit 8,000,000 1,000,000 15,000,000 In addition, existing reporting unit J is expected to benefit from the acquisition, such that its fair value increases by $20,000,000. Unit J has a carrying value of $70,000,000. Assume qualitative assessment at December 31, 2014, indicates it is more likely than not that book value exceeds fair value for all reporting units, and Destin proceeds with the qualitatively test of goodwill impairment. On December 31, 2014, the following amounts were estimated for the four reporting units: Fair value of reporting unit Fair value of indentifiable net assets Book value Unit x 30,000,000 Unit y 15,000,000 Unit z 12,000,000 Unit j 75,000,000 23,000,000 6,000,000 4,000,000 58,000,000 34,000,000 20,000,000 10,000,000 72,000,000 Required: 1. Calculate the total goodwill and its allocation to business units at January 1, 2014 (3 points) 2. Calculate any impairment of goodwill at December 31, 2014. (7 points)