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   

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. The fair value for the amount of goodwill is given by = 978 - 179 - 327 - 274 = 198

The goodwill impairment = 600 - 198 = $402

b. The book values for each are as follows:

1. Tangible assets net = 179

2. Good will = 198

3.Patent = 132

4. Customer List = 142

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