Problem 3-18 (Algo) (LO 3-6) Purchase Company recently acquired several businesses and recognized goodwill in each accu,sition

Accounting Oct 05, 2020

Problem 3-18 (Algo) (LO 3-6)
Purchase Company recently acquired several businesses and recognized goodwill in each accu,sition. 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:
Tangible assets Trademark Customer list Unpatented technology Licenses Copyrights Goodwill Liabilities
Carrying Amounts RU-1 RU-2 RU-3 5197,000 $216,eee 8193,500
204,150
The total fair values for each reporting unit (including goodwill) are $691,100 for RU-1, $673,050 for RU 2, and $692,550 for RU-1 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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