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Instruments Inc. has the following information available. On January 1 , 2 0 2 5 , the company purchased a copyright for $ 5 4
Instruments Inc. has the following information available.
On January the company purchased a copyright for $ It is estimated to have a year life.
On May legal fees for the successful defense of the copyright purchased on January were $
The company uses the straightline method of amortization and has a December yearend.
Required: Related to the intangible asset, compute and answer the following.
a Prepare the journal entry to record the purchase of the copyright on January If No Entry" is needed,"please indicate No Entry".
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b Prepare the journal entry to record the $ expenditure on May If No Entry" is needed, please indicate No Entry".
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c Prepare the journal entry to record the amortization on December If No Entry" is needed, please indicate No Entry".
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d At December an impairment test is performed on the copyright purchased in It is estimated that the net cash flows to be received from the copyright will be $ and its fair value is $ The accumulated amortization at the end of was $ Prepare the journal entry if any to record the impairment on December If No Entry" is needed, please indicate No Entry".
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