Impairment of copyrights.Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2014. Assume Wamser will continue to use this asset in the future. As of December 31, 2014, the copyrights have a remaining useful life of 5 years.

Instructions

(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014.
(b) Prepare the journal entry to record amortization expense for 2015.
(c) The fair value of the copyright at December 31, 2015 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value.

Question

Impairment of copyrights.Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2014.  Assume Wamser will continue to use this asset in the future. As of December 31, 2014, the copyrights have a remaining useful life of 5 years.

Instructions

(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014.
(b) Prepare the journal entry to record amortization expense for 2015.
(c) The fair value of the copyright at December 31, 2015 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value.

Quizplus · Accepted Answer

The Answer of Impairment of copyrights.Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2014.  Assume Wamser will continue to use this asset in the future. As of December 31, 2014, the copyrights have a remaining useful life of 5 years.

Instructions

(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014.
(b) Prepare the journal entry to record amortization expense for 2015.
(c) The fair value of the copyright at December 31, 2015 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value.

Impairment of Copyrights