18. Alomar Co., a consolidated enterprise, conducted an impairment review for ea

Question

18. Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers has recognized net assets of $1,094, including goodwill of $755. Seller's fair value is assessed at $1,028 and includes two internally developed unrecog- nized intangible assets (a patent and a customer list with fair values of $199 and $56, respectively). The following table summarizes current financial information for the Sellers reporting unit: Fair Carrying Amounts Values Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets $ 84 255 755 s 137 326 255 Total $1,094 $1,028 a. Determine the amount of any goodwill impairment for Alomar's Sellers reporting unit. b. After recognition of any goodwill impairment loss, what are the reported book values for the following assets of Alomar's reporting unit Sellers? Tangible assets, net. Goodwill . Patent. Customer list.

Explanation / Answer

HELLO

N0TE-DETAILS OF PATENTS AND CUSTOMERS LIST ARE NOT GIVEN IN THE QUESTION

I HOPE THIS SOLVES YOUR DOUBT FEEL FREE TO COMMENT IF YOU STILL HAVE ANY ISSUE .

A DETERMINE THE AMOUNT OF ANY GOODWILL IMPAIRMENT FOR ALOMAR'S SELLER REPORTING UNIT IMPAIRMENT LOSS = CARRING VALUE- FAIR VALUE TOTAL FAIR VALUE = 1028 ($137+$326+GOODWILL+$255)= 1028 ($718+GOODWILL) = 1028 FAIR VALUE OF GOODWILL= ($1028-$718) FAIR VALUE OF GOODWILL= $310 IMPAIRMENT LOSS = ($755-$310) IMPAIRMENT LOSS = $445 B. AFTER RECONITION OF ANY IMPAIRMENT LOSS, WHAT ARE THE REPORTED BOOK VALUE FOR THE FOLLOWING ASSETS OF ALOMARS REPORTING UNIT SALLERS TANGIBLE ASSETS $84 GOODWILL $310 PATENT $0 CUSTOMERS LIST $0

N0TE-DETAILS OF PATENTS AND CUSTOMERS LIST ARE NOT GIVEN IN THE QUESTION

I HOPE THIS SOLVES YOUR DOUBT FEEL FREE TO COMMENT IF YOU STILL HAVE ANY ISSUE .

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