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ment, one particular reporting unit, Stande, emerged as a candida ets with carrying amounts totaling $1,101, including goodwill of $6 two internally developed unrecognized intangible assets (a pat- vely). The following table summarizes current financial informatic Items ble assets, net nized intangible assets, net ill ognized intangible assets Carrying Fair Amounts Values $ 127 294 680 0 $ 175 339 ? 294

ment, one particular reporting unit, Stande, emerged as a candida ets with carrying amounts totaling $1,101, including goodwill of $6 two internally developed unrecognized intangible assets (a pat- vely). The following table summarizes current financial informatic Items ble assets, net nized intangible assets, net ill ognized intangible assets Carrying Fair Amounts Values $ 127 294 680 0 $ 175 339 ? 294

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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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 $1,101, including goodwill of $680. Stande's reporting unit fair value is assessed at $1,055 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $189 and $105, respectively). The following table summarizes current financial information for the Stande reporting unit: Items Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets a. Goodwill impairment loss b. Tangible assets, net b. Goodwill b. Patent b. Royalty agreement Carrying Amounts $ 127 294 680 0 Amounts Fair Values Required: a. 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? $ 175 339 ? 294
Transcribed Image Text: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 $1,101, including goodwill of $680. Stande's reporting unit fair value is assessed at $1,055 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $189 and $105, respectively). The following table summarizes current financial information for the Stande reporting unit: Items Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets a. Goodwill impairment loss b. Tangible assets, net b. Goodwill b. Patent b. Royalty agreement Carrying Amounts $ 127 294 680 0 Amounts Fair Values Required: a. 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? $ 175 339 ? 294
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