please dont provide answer in image format thank you Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Carrying Amounts RU-1RU-2RU-3Tangible assets$218,000$220,000$180,750Trademark210,000 Customer list124,500 Unpatented technology 233,000 Licenses 103,500 Copyrights 55,500Goodwill188,300245,550135,500Liabilities(35,750) The total fair values for each reporting unit (including goodwill) are $675,150 for RU-1, $769,050 for RU-2, and $757,750 for RU-3. To date, Purchase has reported no goodwill impairments. How much goodwill impairment should Purchase report this year for each of its reporting units?

Goodwill impairment for RU-1 Identifiable assets = 218,000 + 210,000 + 124,500 - 35,750 = 516,750…

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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10RE

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please dont provide answer in image format thank you

Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually.

In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units:

	Carrying Amounts
	RU-1	RU-2	RU-3
Tangible assets	$218,000	$220,000	$180,750
Trademark	210,000
Customer list	124,500
Unpatented technology		233,000
Licenses		103,500
Copyrights			55,500
Goodwill	188,300	245,550	135,500
Liabilities	(35,750)

The total fair values for each reporting unit (including goodwill) are $675,150 for RU-1, $769,050 for RU-2, and $757,750 for RU-3. To date, Purchase has reported no goodwill impairments.

How much goodwill impairment should Purchase report this year for each of its reporting units?

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