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rhe following information is available for ginger company purchased a copyright on january $70,000 ...

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Accounting

rhe following information is available for ginger company purchased a copyright on january $70,000
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PROBLEM 2 (20 points) The following information is available for Ginger Company. 1. Purchased a copyright on January 1, 2018 for $70,000. It is estimated to have a 10-year life. 2. On July 1, 2018, legal fees for successful defense of the copyright purchased on January 1, 2018, were $27,100. Instructions a. Prepare the journal entries to record all the events related to the copyright during 2018. b. At December 31, 2019, an impairment test is performed on the copyright purchased in 2018. It is estimated that the net cash flows to be received from the copyright will be $70,000, and its fair value is $67,000. The accumulated amortization at the end of 2019 was $24,700. Compute the amount of impairment, if any, to be recorded on December 31, 2019

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