Presented below is information related to copyrights owned byFielding Company at December 31, 2020.Cost$9,450,000Carrying amount5,850,000Expected future net cash flows (undiscounted) 5,000,000Fair value4,420,000Assume that Fielding Company will continue to use this copyright inthe future. As of December 31, 2020, the copyright is estimated tohave a remaining useful life of 8 years.Instructions:1. Prepare the journal entry (if any) to record the impairment of theasset at December 31, 2020. The company does not useaccumulated amortization accounts.2. Prepare the journal entry to record amortization expense for2021 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 recordthe increase in fair value.h

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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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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