Answer: $310,000
Step-by-step explanation:
From the question, we are informed that the fair value of net identifiable assets of a reporting unit of Y Company is $270,000 and that 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. We are further told that the reported goodwill impairment for the unit is $10,000.
To calculate the fair value of the entire reporting unit, we deduct the goodwill impairment for the unit which is $10,000 from the carrying value of the reporting unit's net assets on Y Company's books which is $320,000. This will be:
= $320,000 - $10,000
= $310,000