1. Fung Factories acquired equipment for $450000. On 15 March 2020, Fung determines that the equipment is impaired by $65000.

Prepare the entry to record the impairment of the equipment.

2. Ramon Productions purchased the copyright to a lm script for $264 000 on 1 July. The copyright protects the owners legal rights for the next 20 years, but producers at Ramon estimate it will only be able to use the copyright for the next 15 years. Ramon Productions uses the straight-line method of amortisation and has a 30 June year-end.

Prepare the journal entry to record amortisation expense for the rst year.