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Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2,
Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Tangible asseta Trademark Customer 1.at Unpatented technology License Copyrights Goodw111 Liabilities Carrying Amounta RU-2 BU-2 BU-3 $191,000 $291,000 $154,500 200,000 128, 250 207,000 117,500 71,500 156, 550 226, 950 134,000 The total fair values for each reporting unit (including goodwill are $614.800 for RU-1. $802,450 for RU-2, and $676,550 for RU-3. To date, Purchase has reported no goodwill impairments. How much goodwill impairment should Purchase report this year for each of its reporting units? RU-1 RU-2 RU-3 Goodwill Impairment 1055
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