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a. Determine the amount of any goodwill impairment for Apollo's Stande reporting unit. b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Apollo's reporting unit Stande?

a. Determine the amount of any goodwill impairment for Apollo's Stande reporting unit. b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Apollo's reporting unit Stande?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 3-17 (Algo) (LO 3-6) Apollo Company, a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Stande, emerged as a candidate for possible goodwill impairment. Stande had recognized net assets with carrying amounts totaling $1,101, including goodwill of $680. Stande's reporting unit fair value is assessed at $1,055 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $189 and $105, respectively). The following table summarizes current financial information for the Stande reporting unit: Items Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets a. Goodwill impairment loss b. Tangible assets, net b. Goodwill b. Patent b. Royalty agreement Required: a. Determine the amount of any goodwill impairment for Apollo's Stande reporting unit. b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Apollo's reporting unit Stande? Carrying Amounts $127 294 680 0 Amounts Fair Values $ 175 339 ? 294
Transcribed Image Text:Problem 3-17 (Algo) (LO 3-6) Apollo Company, a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Stande, emerged as a candidate for possible goodwill impairment. Stande had recognized net assets with carrying amounts totaling $1,101, including goodwill of $680. Stande's reporting unit fair value is assessed at $1,055 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $189 and $105, respectively). The following table summarizes current financial information for the Stande reporting unit: Items Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets a. Goodwill impairment loss b. Tangible assets, net b. Goodwill b. Patent b. Royalty agreement Required: a. Determine the amount of any goodwill impairment for Apollo's Stande reporting unit. b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Apollo's reporting unit Stande? Carrying Amounts $127 294 680 0 Amounts Fair Values $ 175 339 ? 294
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