Presented below is information related to copyrights owned by lIvanhoe 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.

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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Prepare the journal entry to record amortization expense for 2021. (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 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Dec.
31,
2021
Transcribed Image Text:Prepare the journal entry to record amortization expense for 2021. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021
Presented 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.
Transcribed Image Text:Presented 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.
Expert Solution
Step 1

Given:

Cost $ 5,640,000
Carrying amount $ 5,252,000
Expected future net cash flows $ 5,170,000
Fair value $ 3,360,000

Useful life 5 years

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