To monitor its two markets separately, Tramontane splits its Distribution CGU, which carries goodwill of 750,000, into two new units. The new East CGU takes over operations with a value of 1,800,000 and the new West CGU operations with a value of 1,200,000. Management has identified no method more relevant than relative values. Compute the goodwill reallocated to each new unit.
- Goodwill of the Distribution CGU before the split
- 750,000
- Value of the operations taken over by the East CGU
- 1,800,000
- Value of the operations taken over by the West CGU
- 1,200,000