Exercise 12 13 Presented below is information related to copyrights owned by Mare Company at December 31, 2017 Cost $8,600,000 Carrying amount 4,300,000 Expected future net cash flows 4,000,000 Fair value 3,200,000 Assume that Mare Company will continue to use this copyright in the future As of December 31, 2017, the copyright is estimated to have a remaining useful life of 10 years Prepare the journal entry to record the impairment of the asset at December 31, 2017 The company does not use accumulated amortization accounts (If no entry is required, select No Entry for the account titles and enter 0 for the amounts Credit account titles are automatically indented when amount is entered Do not indent manually ) Account Titles and Explanation Debit Credit Prepare the journal entry to record amortization expense for 2018 related to the copyrights (If no entry is required, select No Entry for the account titles and enter 0 for the amounts Credit account titles are automatically indented when amount is entered Do not indent manually ) Account Titles and Explanation Debit Credit The fair value of the copyright at December 31, 2018, is $3,400,000 Prepare the journal entry necessary to record the increase in fair value (If no entry is required, select No Entry for the account titles and enter 0 for the amounts Credit account titles are automatically indented when amount is entered Do not indent manually ) Account Titles and Explanation Debit Credit

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Exercise 12-13 Presented below is information related to copyrights owned by Mare Company at December 31, 2017. Cost $8,600,000 Carrying amount 4,300,000 Expected future net

Exercise 12-13

Presented below is information related to copyrights owned by Mare Company at December 31, 2017.

Cost		$8,600,000
Carrying amount		4,300,000
Expected future net cash flows		4,000,000
Fair value		3,200,000

Assume that Mare Company will continue to use this copyright in the future. As of December 31, 2017, the copyright is estimated to have a remaining useful life of 10 years.

Prepare the journal entry to record the impairment of the asset at December 31, 2017. The company does not use accumulated amortization accounts. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Prepare the journal entry to record amortization expense for 2018 related to the copyrights. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

The fair value of the copyright at December 31, 2018, is $3,400,000. Prepare the journal entry necessary to record the increase in fair value. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)