Business, 21.02.2020 01:24 sarah5707

Destin Company recently acquired several businesses and recognized goodwill in each acquisition. Destin has allocated the resulting goodwill to its three reporting units: Sand Dollar, Salty Dog, and Baytowne. Destin opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current year assessment of goodwill, Destin provides the following individual asset and liability values for each reporting unit: Carrying Amounts Fair Values Sand Dollar Tangible assets $ 180,000 $ 190,000 Trademark 170,000 150,000 Customer list 90,000 100,000 Goodwill 120,000 ? Liabilities (30,000 ) (30,000 ) Salty Dog Tangible assets $ 200,000 $ 200,000 Unpatented technology 170,000 125,000 Licenses 90,000 100,000 Goodwill 150,000 ? Baytowne Tangible assets $ 140,000 $ 150,000 Unpatented technology 0 100,000 Copyrights 50,000 80,000 Goodwill 90,000 ? The fair values for each reporting unit (including goodwill) are $510,000 for Sand Dollar, $580,000 for Salty Dog, and $560,000 for Baytowne. To date, Destin has reported no goodwill impairments. Determine which of Destin’s reporting units require both steps to test for goodwill impairment. How much goodwill impairment should Destin report this year?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:30, xojade

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? a) compensating managers with stock options, b) financing risky projects with additional debt, c) the threat of hostile takeovers, d) the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions, e) abolishing the security and exchange commission

Answers: 1

continue

Business, 22.06.2019 07:40, genyjoannerubiera

Xyz corporation has provided the following data concerning manufacturing overhead for july: actual manufacturing overhead incurred $ 69,000 manufacturing overhead applied to work in process $ 79,000 the company's cost of goods sold was $243,000 prior to closing out its manufacturing overhead account. the company closes out its manufacturing overhead account to cost of goods sold. which of the following statements is true? multiple choice manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000

Answers: 1

continue

Business, 22.06.2019 10:10, cuthbertson157

conquest, inc. produces a special kind of light-weight, recreational vehicle that has a unique design. it allows the company to follow a cost-plus pricing strategy. it has $9,000,000 of average assets, and the desired profit is a 10% return on assets. assume all products produced are sold. additional data are as follows: sales volume 1000 units per year; variable costs $1000 per unit; fixed costs $4,000,000 per year; using the cost-plus pricing approach, what should be the sales price per unit?

Answers: 2

continue

Business, 22.06.2019 11:00, HUNIXX6561

Samantha is interested in setting up her own accounting firm and wants to specialize in the area of accounting that has experienced the most significant growth in recent years. which area of accounting should she choose as her specialty? samantha should choose as her specialty.

Answers: 1

continue

You know the right answer?

Destin Company recently acquired several businesses and recognized goodwill in each acquisition. Des...