Apollo Company, a consolidated enterprise, conducted an impairment review for each of its reporting units. In...

 

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Apollo Company, a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Stande, emerged as a candidate for possible goodwill impairment. Stande had recognized net assets with carrying amounts totaling $1,101, including goodwill of $680. Stande's reporting unit fair value is assessed at $1,055 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $189 and $105, respectively). The following table summarizes current financial information for the Stande reporting unit: Items Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets Required: Carrying Amounts Fair Values $ 127 294 680 $ 175 339 ? 0 294 a. Determine the amount of any goodwill impairment for Apollo's Stande reporting unit. b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Apollo's reporting unit Stande? a Goodwill impairment loss b. Tangible assets, net b. Goodwill b. Patent b. Royalty agreement Amounts Apollo Company, a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Stande, emerged as a candidate for possible goodwill impairment. Stande had recognized net assets with carrying amounts totaling $1,101, including goodwill of $680. Stande's reporting unit fair value is assessed at $1,055 and includes two internally developed unrecognized intangible assets (a patent and a royalty agreement with fair values of $189 and $105, respectively). The following table summarizes current financial information for the Stande reporting unit: Items Tangible assets, net Recognized intangible assets, net Goodwill Unrecognized intangible assets Required: Carrying Amounts Fair Values $ 127 294 680 $ 175 339 ? 0 294 a. Determine the amount of any goodwill impairment for Apollo's Stande reporting unit. b. After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Apollo's reporting unit Stande? a Goodwill impairment loss b. Tangible assets, net b. Goodwill b. Patent b. Royalty agreement Amounts

Answer rating: 100% (QA)

Answer a To determine the amount of goodwill impairment for Apollos Stande reporting unit we need to ... View the full answer