Crane Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road maintenance services. The division was purchased three years ago for $3,286,000 and has been identified as a reporting unit. The net assets for the division including goodwill are as follows:
Cash
$234,000
Accounts Receivables
278,000
Inventory
782,000
Property, Plant & Equipment
1,037,000
Goodwill
1,330,000
Accounts Payable
(137,000)
Unearned Revenue
(77,000)
Net assets, at carrying amounts
$3,447,000
The fair value of the Alcott Maintenance Division reporting unit as a whole is estimated to be $3,167,000. Management determines that the unit's value in use is $3.260.000