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(Solved): Pelota Company recently acquired several businesses and recognized goodwill in each acquisition. Pe ...
Pelota Company recently acquired several businesses and recognized goodwill in each acquisition. Pelota allocated the resulting goodwill to its three reporting units: R-one, R-two, and R-three. Pelota opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Pelota provides the following individual asset and liability carrying amounts for each of its reporting units: The total fair values for each reporting unit (including goodwill) are $773,950 for R-one, $736,450 for R-two, and $743,500 for R-three. To date, Pelota has reported no goodwill impairments. Required: How much goodwill impairment should Pelota report this year for each of its reporting units?