Question
Peters Company purchased Stevens Company's net assets and assigned them to three separate reporting units. The data associated with each reporting unit is listed below.
Peters Company purchased Stevens Company's net assets and assigned them to three separate reporting units. The data associated with each reporting unit is listed below.
| Reporting Unit | A | B | C |
| Carrying Value of Investment | $500,000 | $250,000 | $300,000 |
| Goodwill included in carrying value | $75,000 | $15,000 | $70,000 |
| Fair Value of net identifiable assets at year-end | $380,000 | $200,000 | $200,000 |
| Fair Value of reporting unit at year-end | $460,000 | $210,000 | $250,000 |
1) What should be the carrying value of goodwill for reporting unit A at year-end?
2) What should be the carrying value of goodwill for reporting unit B at year-end?
3) What impairment loss should reporting unit C report for the year?
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
78025621, 978-0078025624
