However, Lydias assets have taken longer than anticipated to produce the expected synergies with Prines operations. Accordingly, Prine reviewed events and circumstances and concluded that Lydias fair value was likely less than its carrying amount. At year-end, Prine reduced its assessment of the Lydia reporting units fair value to $120,807,500.

At December 31, Prine and Lydia submitted the following balances for consolidation. There were no intra-entity payables on that date.

	Prine, Inc.			Lydia Co.
Revenues	$	(27,900,000	)	$	(18,900,000	)
Operating expenses		13,900,000			18,200,000
Equity in Lydia earnings		(641,750	)
Dividends declared		200,000			80,000
Retained earnings, 1/1		(60,900,000	)		(5,671,500	)
Cash		156,750			520,000
Receivables (net)		430,000			1,135,000
Investment in Lydia		131,267,500
Broadcast licenses		355,000			14,180,000
Movie library		512,500			42,200,000
Equipment (net)		141,100,000			24,500,000
Current liabilities		(780,000	)		(773,500	)
Long-term debt		(22,700,000	)		(7,970,000	)
Common stock		(175,000,000	)		(67,500,000	)

What is the relevant initial test to determine whether goodwill could be impaired?

At what amount should Prine record an impairment loss for its Lydia reporting unit for the year?

What is consolidated net income for the year?

What is the December 31 consolidated balance for goodwill?

What is the December 31 consolidated balance for broadcast licenses?

Prepare a consolidated worksheet for Prine and Lydia (Prines trial balance should first be adjusted for any appropriate impairment loss).