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 $215,500 257,000 154,500 Goodwill impairment loss 190,250 (35,000) R-two $261,000 R-one 232,500 100,000 187,550 The total fair values for each reporting unit (including goodwill) are $773,950 for R-one, $736,450 for R-two, and $743,500 for R-three. To date, Pelota has reported no goodwill impairments. R-three $158,250 Required: How much goodwill impairment should Pelota report this year for each of its reporting units? 65,500 136,500 R-two R-three

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 $215,500 257,000 154,500 Goodwill impairment loss 190,250 (35,000) R-two $261,000 R-one 232,500 100,000 187,550 The total fair values for each reporting unit (including goodwill) are $773,950 for R-one, $736,450 for R-two, and $743,500 for R-three. To date, Pelota has reported no goodwill impairments. R-three $158,250 Required: How much goodwill impairment should Pelota report this year for each of its reporting units? 65,500 136,500 R-two R-three

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

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
$215,500
257,000
154,500
Goodwill impairment loss
190, 250
(35,000)
R-two
$261,000
R-one
232,500
100,000
187,550
The total fair values for each reporting unit (including goodwill) are $773,950 for R-one, $736,450 for R-two, and $743,500 for R-three.
date, Pelota has reported no goodwill impairments.
R-three
$158, 250
Required:
How much goodwill impairment should Pelota report this year for each of its reporting units?
65,500
136,500
R-two
R-three

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