Jericho Company recently acquired three businesses, recognizing goodwill in each acquisition. The acquired goodwill was allocated to the three reporting units: Apple, Banana, and Carrot. Jericho provides the following information in performing the 2012 annual review for impairment:
|
|
Carrying Value
|
Fair Value
|
Valuation of Reporting Unit (including Goodwill)
|
|
Apple
|
Tangible Assets
|
$300,000
|
$320,000
|
$525,000
|
|
|
Trademarks
|
20,000
|
10,000
|
|
|
|
Licenses
|
85,000
|
90,000
|
|
|
|
Liabilities
|
20,000
|
20,000
|
|
|
|
Goodwill
|
130,000
|
?
|
|
|
|
|
|
|
|
|
Banana
|
Tangible Assets
|
$250,000
|
$400,000
|
$450,000
|
|
|
Trademarks
|
25,000
|
50,000
|
|
|
|
Licenses
|
18,000
|
18,000
|
|
|
|
Goodwill
|
140,000
|
?
|
|
|
|
|
|
|
|
|
Carrot
|
Tangible Assets
|
$120,000
|
$120,000
|
$215,000
|
|
|
Unpatented Technology
|
0
|
50,000
|
|
|
|
Customer List
|
35,000
|
45,000
|
|
|
|
Goodwill
|
75,000
|
?
|
|
Required:
Which of Jericho's reporting units require both steps to test for goodwill impairment? How much goodwill impairment should Jericho report for 2012?