Marin Golf Inc. was formed on July 1, 2016, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid S840,000 cash for Old Master. At the time, Old Master's balance sheet reported assets of $670,000 and liabilities of $200,000 (thus owners' equity was $470.000). The fair value of Old Master's assets is estimated to be $810,000. Included in the assets is the Old Master trade name with a fair value of $9,000 and a copyright on some instructional books with a fair value af $24,000. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years Prepare the intangible assets section of Marin Golf Inc. at December 31, 2016. MARIN GOLF INC. Intangibles Section of Balance Sheet How much arnortization expense is included in Marin income for the year ended December 31, 2016? Amortization expense Prepare the journal entry to record arnortization expense for 2017. Prepare the intangible assets section of Marin Golf Inc. at Decermber 31, 2017. (No impairments are required to be recorded in 2017.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit MARIN GOLF INC. Intangibles Section of Balance Sheet At the end of 2018, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf Channel), the Old Master reporting unit has been losing money. Its book value is now At he end of 2018. Magike is evaluating the results of the instru ona business. Due to fierce competition from online and e evsen eg he Golf Channel the Old Mas reporting unit has been losing money lts booaue snow $500,000. The fair value of the Old Master reporting unit is $420,000. The implied value of goodwill is $150,000. Magilke has collected the following information related to the company's intangible assets. Expected Cash Flows (undiscounted) Intangible Asset Fair Values $9,600 32,000 Trade names Copyrights Prepare the journal entries required, if any, to record impairments on Marin intangible assets. (Assume that any amortization for 2018 has been recorded.) (Credit account titles are automatically indented when amount is entered. $3,200 27,000 Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Tites and Explanation Debit Credit
