Acme Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. One particular reporting unit, Martel, emerged as a candidate for possible goodwill impairment. Martel has recognized net assets of $780, including goodwill of $500. Martel€™s fair value is assessed at $650 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $150 and $50, respectively). The following table summarizes current financial information for the Martel reporting unit:

a. Show the two steps to determine the amount of any goodwill impairment for Acme€™s Martel reporting unit.
b. After recognition of any goodwill impairment loss, what are the reported book values for the following assets of Acme€™s reporting unit Martel?
€¢ Tangible assets, net.
€¢ Goodwill.
€¢ Customer list.
€¢Patent.

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Tangible assets, net Recognized intangible assets, net Goodwil Unrecognized intangible assets Carrying Amounts s 80 200 500 Fair Values $110 230 200 Total $780 $650