(Comprehensive Intangible Assets) Montana Matts Golf Ltd. was formed on July 1, 2021, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid 770,000 cash for Old Master. At the time, Old Masters statement of financial position reported assets of 650,000 and liabilities of 200,000 (thus equity was 450,000). The fair value of Old Masters assets is estimated to be 800,000. Included in the assets is the Old Master trade name with a fair value of 10,000 and a copyright on some instructional books with a fair value of 24,000. 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 40 years.

Instructions

1. Prepare the intangible assets section of Montana Matts at December 31, 2021. How much amortization expense is included in Montana Matts income for the year ended December 31, 2021? Show all supporting computations.
2. Prepare the journal entry to record amortization expense for 2022. Prepare the intangible assets section of Montana Matts at December 31, 2022. (No impairments are required to be recorded in 2022.)
3. At the end of 2023, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television, the Old Master cash-generating unit has been losing money. Its book value is now 500,000. The recoverable amount of the Old Master reporting unit is 420,000. Magilke has collected the following information related to the companys other intangible assets.

Intangible Asset	Value-in-Use
Trade names	3,000
Copyrights	25,000

Prepare the journal entries required, if any, to record impairments on Montana Matts intangible assets. (Assume that any amortization for 2023 has been recorded.) Show supporting computations.