Question
At the end of 2021, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf
At the end of 2021, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf Channel), the Old Master reporting unit has been losing money. Its book value is now $410,000. The fair value of the Old Master reporting unit is $330,000. Magilke has collected the following information related to the companys intangible assets.
| Intangible Asset | Expected Cash Flows (undiscounted) | Fair Values | ||
|---|---|---|---|---|
| Trade names | $14,700 | $4,900 | ||
| Copyrights | 49,000 | 44,000 |
Prepare the journal entries required, if any, to record impairments on Windsor intangible assets. (Assume that any amortization for 2021 has been recorded.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
