Intermediate II

Problem III. Impairment of copyright Presented below is the information related to copyrights owned by Wamser Corporation at December 31, 2020. Cost $4,500,000 Accumulated Amortization 300,000 Expected future net cash flows 2,500,000 Fair value 1,700,000 Assume Wamser will continue to use this asset in the future. As of December 31, 2020, the copyrights have a remaining useful life of 5 years. Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. December 31 st DR CR