Required: (a) Prepare the journal entry to record the impairment loss, if any, as at 31 December 2016. (b) Prepare the journal entry to record amortization expense for 2017 related to the copyrights. (c) The fair value of the copyright at 31 December 2017 is RM4,700,000. Prepare the journal entry (if any) necessary to record the increase in fair value.
Required: (a) Prepare the journal entry to record the impairment loss, if any, as at 31 December 2016. (b) Prepare the journal entry to record amortization expense for 2017 related to the copyrights. (c) The fair value of the copyright at 31 December 2017 is RM4,700,000. Prepare the journal entry (if any) necessary to record the increase in fair value.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:90
Cost
RM9,300,000
Carrying amount
RM5,100,000
Recoverable amount
RM4,200,000
Assume that AiN Bhd will continue to use the copyrightin the
future. As of 31 December 2016, the copyright is estimated
to have a remaining useful life of ten years.
Required:
(a) Prepare the journal entry to record the impairment
loss, if any, as at 31 December 2016.
(b) Prepare the journal entry to record amortization
expense for 2017 related to the copyrights.
(c) The fair value of the copyright at 31 December 2017
is RM4,700,000. Prepare the journal entry (if any)
necessary to record the increase in fair value.
Transcribed Image Text:Revision Question 3
AIN Bhd is one of the main book publishers in Klang Valley.
The following are information related to copyright owned
by AiN Bhd at 31 December 2016.
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