Sheahan company recently acquired three businesses

Reference no: EM13590215

1.Sheahan Company recently acquired three businesses, recognizing goodwill in each acquisition. Acquired goodwill was allocated to the three reporting units: Penny, Nickel, and Dime. Sheahan provides the following information in performing the 2012 annual review for impairment:

		Carrying Value	Fair Value	Valuation of Reporting Unit (including Goodwill)
Penny	Tangible Assets	$200,000	$225,000	$365,000
	Trademarks	15,000	10,000
	Licenses	62,000	75,000
	Liabilities	17,000	17,000
	Goodwill	85,000	?

Nickel	Tangible Assets	$185,000	$345,000	$330,000
	Trademarks	20,000	35,000
	Licenses	22,000	22,000
	Goodwill	137,000	?

Dime	Tangible Assets	$95,000	$95,000	$185,000
	Unpatented Technology	0	35,000
	Customer List	44,000	44,000
	Goodwill	655,000	?

Required: (A) Which of Sheahan's reporting units require both steps to test for goodwill impairment??
(B) How much goodwill impairment should Sheahan report for 2012?

Reference no: EM13590215

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