(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
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- Presented below is information related to copyrights owned by Fielding Company at December 31, 2020. Cost $9,450,000 Carrying amount 5,850,000 Expected future net cash flows (undiscounted) 5,000,000 Fair value 4,420,000 Assume that Fielding Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 8 years. Instructions: 1. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. The company does not use accumulated amortization accounts. 2. Prepare the journal entry to record amortization expense for 2021 related to the copyrights. 3. The fair value of the copyright at December 31, 2021, is $5,800,000. Prepare the journal entry (if any) necessary to record the increase in fair value. hPresented below is information related to copyrights owned by Carla Vista Company at December 31, 2020. Cost $8,630,000 Carrying amount 4,480,000 Expected future net cash flows 4,140,000 Fair value 3,330,000 Assume that Carla Vista Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Prepare the journal entry to record amortization expense for 2021 related to the copyrights.Presented below is information related to copyrights owned by Taylor Corporation atDecember 31, 2020.Carrying amount 7,000,000Expected future net cash flows 6,200,000Fair value 3,300,000Assume Taylor will continue to use this asset in the future. As of December 31, 2020,the copyrights have a remaining useful life of 5 years.Instructions(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020.(b) Prepare the journal entry to record amortization expense for 2021.(c) The fair value of the copyright at December 31, 2021 is $3,400,000. Prepare thejournal entry, under GAAP, necessary to record this increase in fair value.
- Presented below is information related to copyrights owned by Carla Vista Company at December 31, 2020. Cost $8,630,000 Carrying amount 4,480,000 Expected future net cash flows 4,140,000 Fair value 3,330,000 Assume that Carla Vista Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. The fair value of the copyright at December 31, 2021, is $3,500,000. Prepare the journal entry necessary to record the increase in fair value.answer needed ASAP Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2020. Cost $6,000,000 Carrying amount 5,200,000 Expected future net cash flows 4,700,000 Fair value 3,200,000 Assume Wamser will continue to use this asset in the future. As of December 31, 2020, the copyrights have a remaining useful life of 5 years. a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. b. Prepare the journal entry to record amortization expense for 2021. c. The fair value of the copyright at December 31, 2021 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value.Prepare the journal entry to record the impairment of the asset at December 31, 2025. The company does not use accumulated amortization accounts. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) Account Titles and Explanation Loss on Impairment (b) Copyrights eTextbook and Media List of Accounts Debit Account Titles and Explanation 990000 Debit Credit Prepare the journal entry to record amortization expense for 2026 related to the copyrights. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) 990000 Attempts: 3 of 4 used Credit
- Presented below is information related to copyrights owned by Fielding Company at December 31, 2020. Cost $10,450,000 Carrying amount 6,420,000 Expected future net cash flows 5,000,000 Fair value 3,850,000 Assume that Fielding Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Instructions Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. The company does not use accumulated amortization accounts. Prepare the journal entry to record amortization expense for 2021 related to the The fair value of the copyright at December 31, 2021, is $4,800,000. Prepare the journal entry (if any) necessary to record the increase in fair value.Current Attempt in Progress Presented below is information related to a copyright owned by Oriole Company at December 31, 2025. Cost Carrying amount Expected future net cash flows Fair value (a) $8,520,000 4,410,000 Assume that Oriole Company will continue to use this copyright in the future. As of December 31, 2025, the copyright is estimated to have a remaining useful life of 10 years. 3,910,000 3,320,000 eTextbook and Media Prepare the journal entry to record the impairment of the asset at December 31, 2025. The company does not use accumulated amortization accounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Debit CreditPresented below is information related to copyrights owned by Ivanhoe Corporation at December 31, 2020. Cost $5,640,000 Carrying amount 5,252,000 Expected future net cash flows 5,170,000 Fair value 3,360,000 Assume Ivanhoe will continue to use this asset in the future. As of December 31, 2020, the copyrights have a remaining useful life of 5 years.
- The intangible assets section of Novak Corporation's balance sheet at December 31, 2025, is presented here. Patents ($78,000 cost less $7,800 amortization) Copyrights ($46,800 cost less $32,760 amortization) Total $70,200 14,040 $84,240 The patent was acquired in January 2025 and has a useful life of 10 years. The copyright was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2026. Jan. 2 Jan.-June Sept. 1 Oct. 1 Paid $60,840 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $299,000 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $26,400. Paid $52,000 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for…Presented below is information related to a copyright owned by Music Company at December 31, 2022.Cost of copyright acquired on 1 January 2014 $8,600,000 Recoverable amount at December 31, 2022 3,500,000When the Music Company acquired the copyright in 2014, it estimated the useful life to be 20 years. Assume that Music Company will continue to use this copyright in the future. As of December 31, 2022, the copyright is estimated to have a remaining useful life of 10 years.Required(a) Prepare all the necessary journal entries at December 31, 2023. The company does not use accumulated amortization accounts.(b) The fair value of the copyright at December 31, 2023, is $3,700,000. prepare all the necessary journal entries at December 31, 2022..Windsor Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent C 2. 3. Year — Initial Cost Date Acquired $52,800 $21,600 $16,800 The following events occurred during the year ended December 31, 2020. 2021 1. Research and development costs of $327,900 were incurred during the year. Patent D was purchased on July 1 for $10,800. This patent has a useful life of 12 years. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2020. The controller for Windsor estimates the future cash flows from Patent B will be as follows. 2022 3/1/16 Future Cash Flows 7/1/17 $2,500 $2,500 9/1/18 Useful Life at Date Acquired 20 years 10 years 8 years