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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 1,2025, the company purchased a copyright for $54,000. It is estimated to have a 9-year life.
On May 1,2025, legal fees for the successful defense of the copyright purchased on January 1,2025, were $21,000.
The company uses the straight-line method of amortization and has a December 31 year-end.
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 1,2025. If "No Entry" is needed,"please indicate "No Entry".
\table[[Reference:,Account Title,Debit:,Credit:],[11?25,type your answer...,Eype your answer...,type your answer...],[,type your answer...,type your answer...,type your answer...]]
b. Prepare the journal entry to record the $21,000 expenditure on May 1,2025. If "No Entry" is needed, please indicate "No Entry".
\table[[Reference:,Account T Title,Debit:,Credit:],[51?25,type your answer...,type your answer...,type your answer...],[,type your answer...,type your answer...,type your answer...]]
c. Prepare the journal entry to record the 2025 amortization on December 31,2025. If "No Entry" is needed, please indicate "No Entry".
\table[[Reference:,Account Title,Debit:,Credit:],[1231?25,type your answer...,type your answer...,type your answer...],[,type your answer...,type your answer...,type your answer...]]
d. At December 31,2026, an impairment test is performed on the copyright purchased in 2025. It is estimated that the net cash flows to be received from the copyright will be $58,640, and its fair value is $55,290. The accumulated amortization at the end of 2026 was $14,200. Prepare the journal entry (if any) to record the impairment on December 31,2026. If "No Entry" is needed, please indicate "No Entry".
\table[[Reference:,Account Title,Debit:,Credit:],[1231?26,type your answer...,type your answer...,type your answer...],[,type your answer...,type your answer...,type your answer...]]
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