Question

Please explain the results for the Patent and Customer list are zero? Problem 3-17 (Algo) (LO 3-6) 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 $1,124, including goodwill of $610. Seller’s reporting unit fair value is assessed at $1,038 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $236 and $82, respectively).

The following table summarizes current financial information for the Sellers reporting unit:

Carrying Amounts Fair Values Tangible assets, net $196 $234 Recognized intangible assets, net 318 351 Goodwill 610 ? Unrecognized intangible assets 0 318

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

a.

Goodwill impairment:

Fair value of reporting unit	$	1,038
Carrying amount of reporting unit		1,124
Goodwill impairment loss*	$	86

*Must be less than $610 (carrying amount of goodwill).

b.

Tangible assets, net	$	196
Goodwill ($610 carrying amount – $86 impairment loss)		524
Patent		0
Customer list		0

Answer 1

[NOTE:- PATENT AND CUSTOMER LIST NOT GIVEN IN TO THE QUESTION]

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