Pritchett Company Recently Acquired Three Businesses, Recognizing Goodwill in Each

question 109

Essay

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 2013 annual review for impairment:
How much goodwill impairment should Pritchett report for 2013?

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Definitions:

Slack

Excess capacity or time available in a system, often seen as a buffer to accommodate unforeseen circumstances.

Schedule

A plan for carrying out a process or procedure, listing the times at which specific events are intended to occur.

Articulating

The act of clearly expressing an idea, thought, or feeling through speech or writing.

Slack

The amount of leeway or extra capacity available within a system, which can accommodate delays or unforeseen issues without impacting the outcome.