E$12\mathrm{.}18($LO $6,10)$ An icon reads, Video. $($Intangible Impairment$)$

The following information is for a copyright owned by Lighting Designs Corp., a private entity, at December $31,2023.$ Lighting Designs applies ASPE.

Cost $$4,300,000$

Carrying amount $2,150,000$

Expected future net cash flows $($undiscounted$)2,000,000$

Fair value $1,600,000$

Assume that Lighting Designs will continue to use this copyright in the future. As at December $31,2023,$ the copyright is estimated to have a remaining useful life of $10$ years.

Instructions

Prepare the journal entry, if any, to record the asset$$s impairment at December $31,2023.$

Prepare the journal entry to record amortization expense for $2024$ related to the copyright.

The copyright$$s fair value at December $31,2024,$ is $$2\mathrm{.}2$ million. Prepare the journal entry, if any, to record the increase in fair value.

An icon reads, Digging Deeper. Using the information from part $($a$),$ discuss whether the copyright would be amortized in $2023$ before the impairment test is conducted.

Would the asset be tested for impairment before or after amortizing the copyright in $2023?$