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 $1,043, including goodwill of $615. Stande’s reporting unit fair value is assessed at $990 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $165 and $145, respectively). The following table summarizes current financial information for the Stande reporting unit: Items Carrying Amounts Fair Values Tangible assets, net $ 118 $ 178 Recognized intangible assets, net 310 353 Goodwill 615 ? Unrecognized intangible assets 0 310 Required: Determine the amount of any goodwill impairment for Apollo’s Stande reporting unit. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Apollo’s reporting unit Stande
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 $1,043, including goodwill of $615. Stande’s reporting unit fair value is assessed at $990 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $165 and $145, respectively). The following table summarizes current financial information for the Stande reporting unit: Items Carrying Amounts Fair Values Tangible assets, net $ 118 $ 178 Recognized intangible assets, net 310 353 Goodwill 615 ? Unrecognized intangible assets 0 310 Required: Determine the amount of any goodwill impairment for Apollo’s Stande reporting unit. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Apollo’s reporting unit Stande
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
| Items | Carrying Amounts | Fair Values |
|---|---|---|
| Tangible assets, net | $ 118 | $ 178 |
| Recognized intangible assets, net | 310 | 353 |
| Goodwill | 615 | ? |
| Unrecognized intangible assets | 0 | 310 |
Required:
-
Determine the amount of any goodwill impairment for Apollo’s Stande reporting unit.
-
After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Apollo’s reporting unit Stande
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