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.

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.

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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