Ch 3 activities final

Ch 3 activities final - 3-2. How much goodwill impairment...

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Pritchett Company recently acquired three businesses, recognizing goodwill in each acquisition. Destin has allocated its acquired goodwill to its three reporting units: Apple, Banana and Carrot. Pritchett provides the following information in performing the 2009 annual review for impairment: 3-1. Which of Pritchett's reporting units require both steps to test for goodwill impairment?
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Unformatted text preview: 3-2. How much goodwill impairment should Pritchett report for 2009? 3-1 answer Goodwill Impairment TestStep 1 Therefore, the Apple and the Carrot reporting units require both steps to test for goodwill impairment. 3-2. answer Goodwill Impairment TestStep 2 (Apple and Carrot only) Total impairment loss $5,000 + $75,000 = $80,000...
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Ch 3 activities final - 3-2. How much goodwill impairment...

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