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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vinubhai
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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