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  3. purchase company recently acquired several busines

Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated...

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Accounting

Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually.

In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units:

Carrying Amounts
RU-1 RU-2 RU-3
Tangible assets $214,000 $295,000 $207,750
Trademark 192,000
Customer list 110,250
Unpatented technology 183,000
Licenses 94,000
Copyrights 67,500
Goodwill 173,200 201,250 135,000
Liabilities (51,250)

The total fair values for each reporting unit (including goodwill) are $613,000 for RU-1, $748,800 for RU-2, and $739,200 for RU-3. To date, Purchase has reported no goodwill impairments.

How much goodwill impairment should Purchase report this year for each of its reporting units?

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