Assume the companies radio broadcast license is renewable at the end of the 10 year term and the management has provided evidence that approval of the renewal is highly probable. In this case the license qualifies as an indefinite life intangible asset not subject to amortization. Therefore the firm carries the broadcast license at its original cost of $786,000

Assuming that renewal of the license is probable analyze the accounting for impairment and prepare the journal entries

Step one, picture 2, options are carrying value, discounted future cash flow's, fair value, and discounted future cash flow's

Step two impairment loss if any?

Step three prepare journal entry options are no entry required, accumulated depreciation broadcast license, fair value a broadcast license, impairment gain a broadcast license, impairment loss on broadcast license, renewal broadcast license

3 of 10 cast license is renewable at the end of each 10-year term and management has provid ense qualifies as an indefinite-life intangible asset and is not subject to amortization. Th More Info On December 31, 2015, the company noted substantial declines in radio advertising revenues over the past year due to expanded satellite radio subscriptions, Internet broadcasts, and the use of iPod players. Based on the required annual review and consideration of the available impairment indicators management believes that it is more likely than not that the broadcast license may be impaired. Therefore, the company must test the broadcast license for impairment Similar broadcast licenses have been sold in auctions for $669,000 Print Done er in the input fields and then continue to the next question DOLL