In early January 2019, Sheffield Corporation applied for a trade name, incurring legal costs of $16,600. In January 2020, Sheffield incurred $8,100 of legal fees in a successful defense of its trade name.

Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.

2019 amortization

$

12/31/19 book value

$

2020 amortization

$

12/31/20 book value

$

Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Sheffield determines that the trade name will provide no future benefits beyond December 31, 2023.

2020 amortization

$

12/31/20 book value

$

Ignoring the response for part (b), compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Sheffield determines that the fair value of the trade name is $15,600. Estimated total future cash flows from the trade name is $16,700 on January 3, 2021.

2021 amortization

$

12/31/21 book value

$