Exercises 643 Impairment Prseted below is indormation related to copyrights owned by Mare Company at Fair vaec loww oempany wil continue to use this copyright in the future. As of December 31, 2017, the copyrig)ht is esti- mated to have a remaining Instructions entry (if any) to record the impairment of the asset at December 31, 2017. The company does ot use entry to recond amortization expense for 2018 related to the copyrights (b) Prepare the journal (c) The fair value of the copyright at December 31, 2018, is $3,400,000. Prepare the journal entry (if any) necessary to record the increase in fair value. related to the Carlos Division of nan iL.03,4) (Goodwill Impairment) Presented below is net asset information res Santana, Inc CARLOS DIVISION As OF DECEMBER 31, 2017 IN MILLIONS) s 50 200 2,600 200 (2,700) s 350 Cash Accounts receivable Property, plant, and equipment (net) Less: Notes payable Net assets purpose of the Carlos Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated wit refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much succo and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from' project to be $400 million. Management has also received an offer to purchase the division for $335 million. All identifia assets and liabilities' book and fair value amounts are the same nstructions (a) Prepare the journal entry (if any) to record the impairment at December 31, 2017 (b) At December 31, 2018, it is estimated that the division's fair value increased to $345 million. Prepare the journa (if any) to record this increase in fair value. 2-15 (L05) (Accounting for Organization Costs) Angelou Corporation was organized in 2016 and began ogp he beginning of 2017. The company is involved in interior design consulting services. The following costs were i r to the start of operations. Attorney fees in connection with organization of the company Purchase of drafting and design equipment Costs of meetings of incorporators to discuss organizational activities State filing fees to incorporate $15,000 10,000 7,000 1,000 $33,000