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 Goodwill 255 326 755 ? Unrecognized intangible assets 255 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? Answer is complete but not entirely correct. Amounts Goodwill impairment a. $ 66 loss b. Tangible assets, net $ 53 Goodwill 689 Patent $ 0 Customer list $ 0

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 Goodwill 255 326 755 ? Unrecognized intangible assets 255 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? Answer is complete but not entirely correct. Amounts Goodwill impairment a. $ 66 loss b. Tangible assets, net $ 53 Goodwill 689 Patent $ 0 Customer list $ 0

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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