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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 |
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
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