Accounting, Analysis, and Principles

On January 2, 2017, Culver Corp. reported the following intangible assets: (1) copyright with a carrying value of $13,000, and (2) a trade name with a carrying value of $8,800. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 10 years.

At December 31, 2017, Culver assessed the intangible assets for possible impairment and developed the following information.

	Estimated Undiscounted Expected Future Cash Flows	Estimated Fair Value
Copyright	$18,000	$14,400
Trade Name	10,300	5,400

Prepare any journal entries required for Culver's intangible asses at December 31, 2017.

Answer Set up:

Date Account Titles and Explanation

Debit

Credit

Dec. 31

(To record amortization expense)

Dec. 31

(To record loss on impairment)