Alomar Co., a consolidated enterprise, conducted an impairment review for each o

Question

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 $1,008, including goodwill of $600. Seller’s fair value is assessed at $978 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $132 and $142, respectively). The following table summarizes current financial information for the Sellers reporting unit:

Determine the amount of any goodwill impairment for Alomar’s Sellers reporting unit.

After recognition of any goodwill impairment loss, what are the reported book values for the following assets of Alomar’s reporting unit Sellers?

Tangiblie Assets, net

Goodwill

Patent

Customer List   

The Tangible Assets is not 179, The Patent isnt 132, Customer List isnt 142. Please help and show work.

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 $1,008, including goodwill of $600. Seller’s fair value is assessed at $978 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $132 and $142, respectively). The following table summarizes current financial information for the Sellers reporting unit:

Explanation / Answer

a. Goodwill Impairment

         Step 1

               Fair value of reporting unit =                           $978

               Carrying value of reporting unit =                   1008

               Because fair value < carrying value, there is a potential goodwill impairment loss.

         Step 2

               Fair value of reporting unit                                                 $978

               Fair value of net assets excluding goodwill                            

                     Tangible assets                                                  $179

                     Recognized intangibles                                      327

                   Unrecognized intangibles                                  274     780

               Implied value of goodwill                                                      198

               Carrying value of goodwill                                                   600

               Goodwill impairment loss                                                   $402

         b.

               Tangible assets, net                                                            $134

               Goodwill                                                                                   179

               Customer list                                                                             -0-

               Patent                                                                                         -0-

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