ELO An icon reads, Video. Intangible Impairment
The following information is for a copyright owned by Lighting Designs Corp., a private entity, at December Lighting Designs applies ASPE.
Cost $
Carrying amount
Expected future net cash flows undiscounted
Fair value
Assume that Lighting Designs will continue to use this copyright in the future. As at December the copyright is estimated to have a remaining useful life of years.
Instructions
Prepare the journal entry, if any, to record the assets impairment at December
Prepare the journal entry to record amortization expense for related to the copyright.
The copyrights fair value at December is $ million. Prepare the journal entry, if any, to record the increase in fair value.
An icon reads, Digging Deeper. Using the information from part a discuss whether the copyright would be amortized in before the impairment test is conducted.
Would the asset be tested for impairment before or after amortizing the copyright in
