The fair value of net identifiable assets of a reporting unit of Y Company is $270,000.The carrying value of the reporting unit's net assets on Y Company's books is $320,000,including $50,000 of goodwill before any impairment.If the reported goodwill impairment for the unit is $10,000,what would be the fair value of the entire reporting unit?
A)$320,000
B)$310,000
C)$270,000
D)$290,000

Question

Quizplus · Accepted Answer

The fair value of the entire reporting unit is the fair value of the net identifiable assets plus the fair value of the goodwill. The fair value of the net identifiable assets is $270,000, and the fair value of the goodwill is $320,000 - $270,000 - $10,000 = $40,000. Therefore, the fair value of the entire reporting unit is $270,000 + $40,000 = $310,000.

The Fair Value of Net Identifiable Assets of a Reporting