REFERENCE: Ref.03_16 Pritchett Company Recently Acquired Three Businesses,recognizing Goodwill in Each Acquisition.Destin

question 6

Essay

REFERENCE: Ref.03_16
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 2009 annual review for impairment:
-How much goodwill impairment should Pritchett report for 2009?

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Definitions:

Freight-In

A cost of goods sold account that records the shipping cost to the buyer.

Merchandise Inventory

Goods or products that a company holds for the purpose of reselling to customers.

Sales Returns & Allowances

A reduction in sales revenue that occurs when customers return products or receive discounts for unsatisfactory goods.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals and not recorded in real-time after each sale or purchase.