On July 12, 2006, Carver, Inc. acquired Jones Company in a business combination. As a result of the combination, the following amounts of goodwill were recorded for each of the three reporting units of the acquired company.
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|
Retailing |
$30,000 |
|
Service |
$20,000 |
|
Financing |
$40,000 |
Near the end of 2006 a new major competitor entered the company’s market and Carver was concerned that this might cause a significant decline in the value of goodwill. Accordingly, Carver computed the implied value of the goodwill for the three major reporting units at December 31, 2006 as follows:
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|
Retailing |
$25,000 |
|
Service |
$10,000 |
|
Financing |
$60,000 |
Determine the amount of impairment of goodwill that should be recorded by Carver at December 31, 2006.
- $0
- $10,000
- $15,000
- $25,000