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 had recognized net assets with carrying amounts totaling $1,094, including goodwill of $755. Seller’s reporting unit fair value is assessed at $1,028 and includes two internally developed unrecognized 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:

	Carrying Amounts		Fair Values
Tangible assets, net	$84		$137
Recognized intangible assets, net	255		326
Goodwill	755		?
Unrecognized intangible assets	0		255

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

2. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomar’s reporting unit Sellers?

Answer 1

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