(8) %24 23 Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Carrying Amounts RU-2 $291,000 RU-1 RU-3 Tangible assets Trademark $191,000 $154,500 Customer list 00000 128, 250 Unpatented technology Licenses 117,500 Copyrights 71,500 156,550 226,950 Liabilities 000'DET (000') The total fair values for each reporting unit (including goodwill) are S614,800 for RU-1, $802.450 for RU-2, and $676,550 for RU-3. To date, Purchase has reported no goodwill impairments. How much goodwill impairment should Purchase report this year for each of its reporting units? RU-1 RU-2 RU-3 Goodwill impairment loss Mc Graw 11 of 15 Type here to search dy f12 ins prt sc delete f6 6) f5 81 f3 米 & L. backspa 4 %3D 8. 6. 3. 5. 7. pause N. alt ctrl

(8) %24 23 Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Carrying Amounts RU-2 $291,000 RU-1 RU-3 Tangible assets Trademark $191,000 $154,500 Customer list 00000 128, 250 Unpatented technology Licenses 117,500 Copyrights 71,500 156,550 226,950 Liabilities 000'DET (000') The total fair values for each reporting unit (including goodwill) are S614,800 for RU-1, $802.450 for RU-2, and $676,550 for RU-3. To date, Purchase has reported no goodwill impairments. How much goodwill impairment should Purchase report this year for each of its reporting units? RU-1 RU-2 RU-3 Goodwill impairment loss Mc Graw 11 of 15 Type here to search dy f12 ins prt sc delete f6 6) f5 81 f3 米 & L. backspa 4 %3D 8. 6. 3. 5. 7. pause N. alt ctrl

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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Question

100%

(8)
%24
23
Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the
resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore
performs a quantitative goodwill impairment review annually.
In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of
its reporting units:
Carrying Amounts
RU-2
$291,000
RU-1
RU-3
Tangible assets
Trademark
$191,000
$154,500
Customer list
00000
128, 250
Unpatented technology
Licenses
117,500
Copyrights
71,500
156,550
226,950
Liabilities
000'DET
(000')
The total fair values for each reporting unit (including goodwill) are S614,800 for RU-1, $802.450 for RU-2, and $676,550 for RU-3. To
date, Purchase has reported no goodwill impairments.
How much goodwill impairment should Purchase report this year for each of its reporting units?
RU-1
RU-2
RU-3
Goodwill impairment loss
Mc
Graw
11 of 15
Type here to search
dy
f12
ins
prt sc
delete
f6
6)
f5
81
f3
米
&
L.
backspa
4
%3D
8.
6.
3.
5.
7.
pause
N.
alt
ctrl

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