Pritchett Company Recently Acquired Three Businesses,recognizing Goodwill in Each Acquisition

Essay

Pritchett Company recently acquired three businesses,recognizing goodwill in each acquisition.Pritchett has allocated its acquired goodwill to its three reporting units: Apple,Banana,and Carrot.Pritchett provides the following information in performing the 2011 annual review for impairment:
$\begin{array}{|l|l|r|r|r|}\hline&&&&\text { Valuation of } \\\hline&& \text { Carrying } & \text { Fair } & \text { Reporting Unit }\\\hline&& \text { Value } & \text { Value } & \text { (including Goodwill) } \\\hline\text { Apple } & \text { Tangible assets } & \$ 300,000 & \$ 320,000&\$510,000 \\\hline & \text { Trademark } & 20,000 & 10,000 \\\hline & \text { Licenses } & 85,000 & 90,000 \\\hline & \text { Liabilities } & (20,000) & (20,000) \\\hline & \text { Goodwill } & 130,000 & ?\\\hline\\\hline \text { Banana } & \text { Tangible assets } & \$ 250,000 & \$ 400,000 & \$ 450,000 \\\hline & \text { Trademark } & 25,000 & 50,000 & \\\hline & \text { Licenses } & 18,000 & 18,000 & \\\hline & \text { Goodwill } & 140,000 & ? & \\\hline\\\hline \text { Carrot } & \text { Tangible assets } & \$ 120,000 & \$ 120,000 & \$ 215,000 \\\hline & \text { Unpatented technology } & 0 & 50,000 & \\\hline & \text { Customer list } & 35,000 & 45,000 & \\\hline & \text { Goodwill } & 75,000 & ? & \\\hline & & & & \\\hline\end{array}$

-Which of Pritchett's reporting units require both steps to test for goodwill impairment?