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 $1,266, including goodwill of $840. Seller's reporting unit fair value is assessed at $1,168 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $244 and $87, respectively). The following table summarizes current financial information for the Sellers reporting unit: Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets a. Goodwill impairment loss b Tangible assets, net Goodwill Patent Customer list Carrying Amounts a. Determine the amount of any goodwill impairment for Alomar's Sellers reporting unit. b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomar's reporting unit Sellers? Amounts $95 331 840 0 Fair Values $150 393 ? 331
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 $1,266, including goodwill of $840. Seller's reporting unit fair value is assessed at $1,168 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $244 and $87, respectively). The following table summarizes current financial information for the Sellers reporting unit: Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets a. Goodwill impairment loss b Tangible assets, net Goodwill Patent Customer list Carrying Amounts a. Determine the amount of any goodwill impairment for Alomar's Sellers reporting unit. b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomar's reporting unit Sellers? Amounts $95 331 840 0 Fair Values $150 393 ? 331
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter16: Advanced Topics Concerning Complex Auditing Judgments
Section: Chapter Questions
Problem 65RSCQ
Related questions
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 $1,266, including goodwill of $840. Seller's reporting unit fair value is assessed at $1,168 and includes two
internally developed unrecognized intangible assets (a patent and a customer list with fair values of $244 and $87, respectively). The
following table summarizes current financial information for the Sellers reporting unit:
Tangible assets, net
Recognized intangible assets, net
Goodwill
Unrecognized intangible assets
a. Goodwill impairment loss
b. Tangible assets, net
Goodwill
Patent
Customer list
Carrying
Amounts
$95
331
840
0
Amounts
Fair
Values
$150
a. Determine the amount of any goodwill impairment for Alomar's Sellers reporting unit.
b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomar's
reporting unit Sellers?
393
?
331](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb513605f-3b24-4055-8970-73d38e831acc%2F76685a13-2c0b-43f4-9a51-fa69b651e6b2%2Fhfs7rls_processed.png&w=3840&q=75)
Transcribed Image Text: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 $1,266, including goodwill of $840. Seller's reporting unit fair value is assessed at $1,168 and includes two
internally developed unrecognized intangible assets (a patent and a customer list with fair values of $244 and $87, respectively). The
following table summarizes current financial information for the Sellers reporting unit:
Tangible assets, net
Recognized intangible assets, net
Goodwill
Unrecognized intangible assets
a. Goodwill impairment loss
b. Tangible assets, net
Goodwill
Patent
Customer list
Carrying
Amounts
$95
331
840
0
Amounts
Fair
Values
$150
a. Determine the amount of any goodwill impairment for Alomar's Sellers reporting unit.
b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomar's
reporting unit Sellers?
393
?
331
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