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?