Asked by Hector Villagomez on Apr 25, 2024
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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 2021 annual review for impairment: 
How much goodwill impairment should Pritchett report for 2021?
Goodwill Impairment
An accounting charge that companies record when the value of goodwill on the balance sheet exceeds the tested fair market value.
Reporting Units
Components of a business entity for which discrete financial information is available and is reviewed by the entity's management.
- Elucidate the methodology for evaluating goodwill impairment according to the Financial Accounting Standards Board Accounting Standards Codification, along with the streamlined approaches accessible to private entities.
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Learning Objectives
- Elucidate the methodology for evaluating goodwill impairment according to the Financial Accounting Standards Board Accounting Standards Codification, along with the streamlined approaches accessible to private entities.