5 6 7 8 $4,335,000 2,145,000 2,032,000 1,867,000 The following information is for a copyright owned by Pronghom Corp., a private entity, at December 31, 2020.. Pronghorn Corp. applies ASPE. Cost Carrying amount Expected future net cash flows (undiscounted) Fair value 9 10 11 Assume that Pronghorn Corp. will continue to use this copyright in the future. As at December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. 2 Instructions 3 a) Prepare the journal entry, if any, to record the asset's impairment at December 31, 2020. (4 marks) Date Accounts and Explanations Debit Credit 25 26 b) Prepare the journal entry to record amortization expense for 2021 related to the copyright. (4 marks) 27 Date Accounts and Explanations 28 29 30 31 32 33 34 35 36 37 Debit Credit 38 39 40 41 42 c) The copyright's fair value at December 31, 2021, is $2.5 million. Prepare the journal entry, if any, to record the increase in fair value. (2 marks) Date Accounts and Explanations Debit Credit