Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In itsqualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwillimpairment. Sellers had recognized net assets with carrying amounts totaling $1,150, including goodwill of$660. Seller's reporting unit fair value is assessed at $1,122 and includes two internally developedunrecognized intangible assets (a patent and a customer list with fair values of $271 and $122, respectively).The following table summarizes current financial information for the Sellers reporting unit:CarryingFairAmountsValuesTangible assets, netRecognized intangible assets, netGoodwill$97$146393435660Unrecognized intangible assets393a. 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 thefollowing assets of Alomar's reporting unit Sellers?Amountsa. Goodwill impairment lossb. Tangible assets, netGoodwillPatentCustomer list

Goodwill Impairment loss = Implied value of goodwill - Carrying Value of Goodwill Once Goodwill…

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?

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?

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 65RSCQ

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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 has recognized net assets of $1,094, including goodwill of $755. Seller’s fair value is assessed at $1,028 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $199 and $56, respectively). The following table summarizes current financial information for the Sellers reporting unit: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?• Tangible assets, net.• Goodwill.• Patent.• Customer list.
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 with carrying amounts totaling $1,150, including goodwill of $660. Seller’s reporting unit fair value is assessed at $1,122 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $271 and $122, respectively). The following table summarizes current financial information for the Sellers reporting unit: CarryingAmounts FairValues Tangible assets, net $97 $146 Recognized intangible assets, net 393 435 Goodwill 660 ? Unrecognized intangible assets 0 393 Determine the amount of any goodwill impairment for Alomar’s Sellers reporting unit. After recognition of any goodwill impairment loss, what are the reported carrying amounts for…
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fast and do not copy from chegg 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 has recognized net assets of $1,316, including goodwill of $795. Seller’s fair value is assessed at $1,291 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $273 and $133, respectively). The following table summarizes current financial information for the Sellers reporting unit: CarryingAmounts FairValues Tangible assets, net $ 115 $ 144 Recognized intangible assets, net 406 463 Goodwill 795 ? Unrecognized intangible assets 0 406 Total $ 1,316 $ 1,291 Determine the amount of any goodwill impairment for Alomar’s Sellers reporting unit. After recognition of any goodwill impairment loss, what are the…
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