Question
The management of Devin Corporation is testing two of its reporting units for impairment of goodwill.Information about results of these tests are shown below. Reporting
The management of Devin Corporation is testing two of its reporting units for impairment of goodwill.Information about results of these tests are shown below.
Reporting Units
Telecommunications
Networking
Segment carrying amount
(including goodwill)
$2,500,000
$3,000,000
Carrying value of goodwill
500,000
500,000
Estimated fair value of total
2,900,000
2,800,000
Estimated fair value ofassets and liabilities other than goodwill
2,100,000
2,500,000
After properly adjusting the goodwill for impairment, which of the following represents the adjusted amount of goodwill for the two reporting units?
Telecommunications Networking
A. $500,000 $500,000
B. $800,000 $300,000
C. $500,000 $300,000
D. $400,000 $200,000
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