Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 34

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, SaltyDog, and Baytowne. Destin 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:

The fair values for each reporting unit (including goodwill) are $510,000 forSand Dollar, $580,000 for Salty Dog, and$560,000 for Baytowne. To date, Destinhas reportedno goodwillimpairments.
a. Which of Destin's reporting units require both steps to test for goodwillimpairment
b. How much goodwill impairment should Destin report this year
c. What changes to the valuations of Destin's tangible assets and identified intangible assets should be reported based on the goodwill impairment tests