This case uses a goodwill impairment setting to introduce intermediate and advanced accounting students to business valuation (that is, estimating the fair value of a business unit). Tombstone, Inc. previously acquired JH Outfitter's (JHO) and recorded $2.2 million of goodwill. In prior years, management utilized an outside service to provide fair value estimates of JHO for purposes of the goodwill impairment testing. The business valuation is to be done in-house this year. Three common valuation approaches are discussed in the case to provide students with a background that is sufficient to apply these methods to estimate the fair value of JHO for the goodwill impairment tests. Sufficient, yet conflicting, information is also provided to complete the basic requirements. As such, the case provides students an opportunity to apply the goodwill impairment model (as revised in 2017) where the fair value of a business unit is uncertain.

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