Problem

Goodwill Assigned to Reporting UnitsGroft Company purchased Strobe Company’s net assets an...

Goodwill Assigned to Reporting Units

Groft Company purchased Strobe Company’s net assets and assigned them to four separate reporting units. Total goodwill of $186,000 is assigned to the reporting units as indicated:

 

Reporting Unit

A

B

C

D

Carrying value of investment

$700,000

$330,000

$380,000

$520,000

Goodwill included in carrying value

60,000

48,000

28,000

50,000

Fair value of net identifiable assets at year-end

600,000

300,000

400,000

500,000

Fair value of reporting unit at year-end

690,000

335,000

370,000

585,000

Required

Determine the amount of goodwill that Groft should report at year-end. Show how you computed it.

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