Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers had recognized net assets wi carrying amounts totaling $1,456, including goodwill of $920. Seller's reporting unit fair value is assessed at $1,289 and includes two nternally developed unrecognized intangible assets (a patent and a customer list with fair values of $301 and $141, respectively). The following table summarizes current financial information for the Sellers reporting unit: Carrying Fair Values $158 Amounts Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets $94 442 517 920 442

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment,
one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers had recognized net assets wi
carrying amounts totaling $1,456, including goodwill of $920. Seller's reporting unit fair value is assessed at $1,289 and includes two
internally developed unrecognized intangible assets (a patent and a customer list with fair values of $301 and $141, respectively). The
following table summarizes current financial information for the Sellers reporting unit:
Carrying
Fair
Amounts
Values
$94
$158
Tangible assets, net
Recognized intangible assets, net
Goodwill
Unrecognized intangible assets
442
517
920
442
a. Determine the amount of any goodwill impairment for Alomar's Sellers reporting unit.
b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomar's
reporting unit Sellers?
Amounts
a.
Goodwill impairment loss
$
748
b.
Tangible assets, net
$
94
Goodwill
$
172
Patent
$
Customer list
$
Transcribed Image Text:Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers had recognized net assets wi carrying amounts totaling $1,456, including goodwill of $920. Seller's reporting unit fair value is assessed at $1,289 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $301 and $141, respectively). The following table summarizes current financial information for the Sellers reporting unit: Carrying Fair Amounts Values $94 $158 Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets 442 517 920 442 a. Determine the amount of any goodwill impairment for Alomar's Sellers reporting unit. b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomar's reporting unit Sellers? Amounts a. Goodwill impairment loss $ 748 b. Tangible assets, net $ 94 Goodwill $ 172 Patent $ Customer list $
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An impairment loss is recognized when the carrying value or the book value of the asset is more than the recoverable amount of an asset. In other words, when the recoverable amount (fair value) of an asset reduces below the carrying value of an asset, the difference in the amount is determined as an impairment loss.

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