Presented below is information related to copyrights owned by Yaeger Corporation at December 31, 2018. Cost $3,600,000 Carrying amount 3,200,000 Expected future net cash flows (undiscounted) 2,800,000 Fair value 1,900,000 Assume Yaeger will continue to use this asset in the future. As of December 31, 2018, the copyrights have a remaining useful life of 5 years with zero salvage value. The company does not use accumulated amortization accounts. (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2018. (b) Prepare the journal entry to record amortization expense for 2019. (c) The fair value of the copyright at December 31, 2019, is $2,000,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
Presented below is information related to copyrights owned by Yaeger Corporation at December 31, 2018.
Cost $3,600,000
Carrying amount 3,200,000
Expected future net
Fair value 1,900,000
Assume Yaeger will continue to use this asset in the future. As of December 31, 2018, the copyrights have a remaining useful life of 5 years with zero salvage value. The company does not use accumulated amortization accounts.
(a) Prepare the
(b) Prepare the journal entry to record amortization expense for 2019.
(c) The fair value of the copyright at December 31, 2019, is $2,000,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
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