The following information is available for Ivanhoe Company. 1.Purchased a copyright on January 1,...

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Accounting

The following information is available for Ivanhoe Company. 1.Purchased a copyright on January 1, 2020 for $62,400. It isestimated to have a 10-year life. 2. On July 1, 2020, legal feesfor successful defense of the copyright purchased on January 1,2020, were $17,784.
Prepare the journal entries to record all the events related tothe copyright during 2020. (Credit account titles areautomatically indented when the amount is entered. Do not indentmanually.)
Jan 1st 2020, July 1st, 2020, Dec 31st, 2020
At December 31, 2021, an impairment test is performed on thecopyright purchased in 2020.

It is estimated that the net cash flows to be received from thecopyright will be $62,400, and its fair value is $59,280. Theaccumulated amortization at the end of 2021 was $15,288. Computethe amount of impairment, if any, to be recorded on December 31,2021. (If there is a loss on impairment, then enteramounts using either a negative sign preceding the number e.g. -45or parentheses e.g. (45).)
Amount of impairment $

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4.1 Ratings (792 Votes)

JOURNAL ENTRY
Date	Accounts titles and Explanation	Debit ($)	Credit ($)
01-Jan-20	Copyright	62,400
	Cash		62,400

01-Jul-20	Copyright	17,784
	Cash		17,784


31-Dec-20	Amortization Expense((62,400/10) + {(17,784/9.5)*6/12}	7,176
	Copyright		7,176

Amortization in year 2021 = 62,400/10 + 17,784/9.5 = 8,112
carrying Amount = 62,400 +17784-15,288 = $64,896
Recoverable amount = $62,400
fair value=59,280
Since,the carrying Amount is greater than Expected net cash flows,
Amount of Impairment = $64,896 - $59,280 = ($5,616)

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In: AccountingThe following information is available for Ivanhoe Company. 1.Purchased a copyright on January 1, 2020...The following information is available for Ivanhoe Company. 1.Purchased a copyright on January 1, 2020 for $62,400. It isestimated to have a 10-year life. 2. On July 1, 2020, legal feesfor successful defense of the copyright purchased on January 1,2020, were $17,784.Prepare the journal entries to record all the events related tothe copyright during 2020. (Credit account titles areautomatically indented when the amount is entered. Do not indentmanually.)Jan 1st 2020, July 1st, 2020, Dec 31st, 2020At December 31, 2021, an impairment test is performed on thecopyright purchased in 2020.It is estimated that the net cash flows to be received from thecopyright will be $62,400, and its fair value is $59,280. Theaccumulated amortization at the end of 2021 was $15,288. Computethe amount of impairment, if any, to be recorded on December 31,2021. (If there is a loss on impairment, then enteramounts using either a negative sign preceding the number e.g. -45or parentheses e.g. (45).)Amount of impairment$