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es Pelota Company recently acquired several businesses and recognized goodwill in each acquisition. Pelota allocated the resulting goodwill to its three reporting units: R-one, R-two, and R-three. Pelota opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Pelota provides the following individual asset and liability carrying amounts for each of its reporting units: Items Tangible assets Trademark Computer software Unpatented technology Licenses Copyrights Goodwill Liabilities Carrying Amounts R-one $200,000 212,000 136,000 Goodwill impairment loss 128,800 (33,250) R-two $270,000 R-one 237,000 126,000 246,050 The total fair values for each reporting unit (including goodwill) are $630,350 for R-one, $834,200 for R-two, and $701,300 for R-three. To date, Pelota has reported no goodwill impairments. R-three $158,000 Required: How much goodwill impairment should Pelota report this year for each of its reporting units? 68,500 117,000 R-two R-three

es Pelota Company recently acquired several businesses and recognized goodwill in each acquisition. Pelota allocated the resulting goodwill to its three reporting units: R-one, R-two, and R-three. Pelota opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Pelota provides the following individual asset and liability carrying amounts for each of its reporting units: Items Tangible assets Trademark Computer software Unpatented technology Licenses Copyrights Goodwill Liabilities Carrying Amounts R-one $200,000 212,000 136,000 Goodwill impairment loss 128,800 (33,250) R-two $270,000 R-one 237,000 126,000 246,050 The total fair values for each reporting unit (including goodwill) are $630,350 for R-one, $834,200 for R-two, and $701,300 for R-three. To date, Pelota has reported no goodwill impairments. R-three $158,000 Required: How much goodwill impairment should Pelota report this year for each of its reporting units? 68,500 117,000 R-two R-three

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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ces Pelota Company recently acquired several businesses and recognized goodwill in each acquisition. Pelota allocated the resulting goodwill to its three reporting units: R-one, R-two, and R-three. Pelota opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Pelota provides the following individual asset and liability carrying amounts for each of its reporting units: Items Tangible assets Trademark Computer software Unpatented technology Licenses Copyrights Goodwill Liabilities Carrying Amounts R-one $200,000 212,000 136,000 Goodwill impairment loss 128,800 (33,250) R-two R-three $270,000 $158,000 R-one 237,000 126,000 246,050 The total fair values for each reporting unit (including goodwill) are $630,350 for R-one, $834,200 for R-two, and $701,300 for R-three. To date, Pelota has reported no goodwill impairments. Required: How much goodwill impairment should Pelota report this year for each of its reporting units? 68,500 117,000 R-two R-three
Transcribed Image Text:ces Pelota Company recently acquired several businesses and recognized goodwill in each acquisition. Pelota allocated the resulting goodwill to its three reporting units: R-one, R-two, and R-three. Pelota opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Pelota provides the following individual asset and liability carrying amounts for each of its reporting units: Items Tangible assets Trademark Computer software Unpatented technology Licenses Copyrights Goodwill Liabilities Carrying Amounts R-one $200,000 212,000 136,000 Goodwill impairment loss 128,800 (33,250) R-two R-three $270,000 $158,000 R-one 237,000 126,000 246,050 The total fair values for each reporting unit (including goodwill) are $630,350 for R-one, $834,200 for R-two, and $701,300 for R-three. To date, Pelota has reported no goodwill impairments. Required: How much goodwill impairment should Pelota report this year for each of its reporting units? 68,500 117,000 R-two R-three
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