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. WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for can The expected total useful life of the Copyright is 10 years. Assume that the teideal Vale of the Copyright is always 50 (ie. Zero). On January 2019 WATERVILLE Company barries out an Impairment Test on the Copyright. The Value in Use of the Copyright is $10,000000 the Fair Value is $6,000.000 and the costs to sell are $500,000. Assume that the expected total weful life of the Copyright remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000 The firm uses Straight Line Amortization. Assume that the Accounting year-end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Cequired: a. Show the Journal Entries required by WATER

. WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for can The expected total useful life of the Copyright is 10 years. Assume that the teideal Vale of the Copyright is always 50 (ie. Zero). On January 2019 WATERVILLE Company barries out an Impairment Test on the Copyright. The Value in Use of the Copyright is $10,000000 the Fair Value is $6,000.000 and the costs to sell are $500,000. Assume that the expected total weful life of the Copyright remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000 The firm uses Straight Line Amortization. Assume that the Accounting year-end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Cequired: a. Show the Journal Entries required by WATER

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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. . WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for can The expected total useful life of the Copyright is 10 years. Assume that the Residual Vale of the Copyright is always $0 (i.c.. Zero). On January 2019 WATERVILLE Company carries out an Impairment Test on the Copyright. The Value in Use of the Copyright is $10,000000 the Fair Value is $6,000.000 and the costs to sell are $500,000. Assume that the expected total useful life of the Copyright remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000 The firm uses Straight Line Amortization. Assume that the Accounting year-end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Required: a. Show the Journal Entries required by WATERVILLE Company on: 1 January 2018) 31 December 2018 i. ii. iii. iv. V. 1 January 2020. 31 December 2020 Clearly show all workings. Show the Financial Statement Extracts for the year-ended 31 December 2020. vi. 1 January 2019 31 December 2019
Transcribed Image Text:. . WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for can The expected total useful life of the Copyright is 10 years. Assume that the Residual Vale of the Copyright is always $0 (i.c.. Zero). On January 2019 WATERVILLE Company carries out an Impairment Test on the Copyright. The Value in Use of the Copyright is $10,000000 the Fair Value is $6,000.000 and the costs to sell are $500,000. Assume that the expected total useful life of the Copyright remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000 The firm uses Straight Line Amortization. Assume that the Accounting year-end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Required: a. Show the Journal Entries required by WATERVILLE Company on: 1 January 2018) 31 December 2018 i. ii. iii. iv. V. 1 January 2020. 31 December 2020 Clearly show all workings. Show the Financial Statement Extracts for the year-ended 31 December 2020. vi. 1 January 2019 31 December 2019
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