?Now, complete step 2 of the impairment test for each intangible asset. Select whether step 2 of the test is required on the first line. ?(If the test is not? required, leave all remaining cells in that column blank.? However, if the test is? required, but no impairment loss? exists, then leave only the impairment loss input cell blank in that column. Use the present value and future value? tables, the formula? method, a financial? calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula? method, use factor amounts rounded to five decimal?places, X.XXXXX. Round intermediary calculations and your final answers to the nearest whole? dollar.) PLEASE HELP
Requirements Intangible Assets - X More Info a. Computr the impairment Inss (if any) for each intangibla asset. b. Prepare the journal antry necessary to record the mpaiment loss e. Assuming thet SAR amortizes ts finite-liMe intengible assets using the Management provided the fellawirng infertrkain related to intangible assets it abtained during the current year: Franchise: Due te current market conditions, products soid under the franchise have experienced Intangiblesset Net Carrying Value Remalning Life 5 years 3 yeers NIA sgnificant sales dedines from possible obsolescance, Patent: SAR is curently Involved in litgation that will determine t the company has the exclusive right to 859,000 500,000 3,954,000 $5,313,000 straight-ine mathed, wth no scrap valua, prepare tha joumal entry to record the annual amoation for thn frst year subsequont ba the impairment Patent sall the patentnd product Legal counsel informed SAR chat tha value of the patent will Ikely he reduuoad. Trade name Trads name: The company s required to test for impaiment of its inde nite-e Intargible assets annuelly SAR does nat usea separ acoumulated amortition accourt for ie inlangible assels Le., t deducts the amount of amorization directly from the intangble asset acccunt). SAR's cost of capital is 8%. Management estmates the iallawing future cash flows to be generated over the next five years from the uge or ts intangible assets: Future Period Franchise Patent Trade Name Print Done s 340,000S Year 1 Year 2 Ynar 3 Year4 Year 5 282,000 820,000 710,000 690,000 550,000 388,000 3,138,000 Step 1: Franchise Patent Trade Narne No Print Done Step 1 recuired? Carrying value at year-end Undisccunted future cash flaws $808,600393,000 16,000 859,000 500,000 48,000 29.500 Impairment indicated S 80B.500 S 393,000 Tola Now, complate step 2 of the impaiment test for each intangble asset. Selact whather step 2 of the test is required on the firstline, (If the test is not required, leave all rem mpairmant loss input call blank in that column. LUisa the presant valun and future valn tables, the formula method, a financial calculator, or a sproadshant for your places, Xxxxoxx. Round inlemedary calculations and your final arnswers to the nearest whole dellar.) Step 2: Patent Trade name Print Done e8 Yes Step 2 recuired Fair value at yeer-end Carrying value al year-end Impairment loss Requirements Intangible Assets - X More Info a. Computr the impairment Inss (if any) for each intangibla asset. b. Prepare the journal antry necessary to record the mpaiment loss e. Assuming thet SAR amortizes ts finite-liMe intengible assets using the Management provided the fellawirng infertrkain related to intangible assets it abtained during the current year: Franchise: Due te current market conditions, products soid under the franchise have experienced Intangiblesset Net Carrying Value Remalning Life 5 years 3 yeers NIA sgnificant sales dedines from possible obsolescance, Patent: SAR is curently Involved in litgation that will determine t the company has the exclusive right to 859,000 500,000 3,954,000 $5,313,000 straight-ine mathed, wth no scrap valua, prepare tha joumal entry to record the annual amoation for thn frst year subsequont ba the impairment Patent sall the patentnd product Legal counsel informed SAR chat tha value of the patent will Ikely he reduuoad. Trade name Trads name: The company s required to test for impaiment of its inde nite-e Intargible assets annuelly SAR does nat usea separ acoumulated amortition accourt for ie inlangible assels Le., t deducts the amount of amorization directly from the intangble asset acccunt). SAR's cost of capital is 8%. Management estmates the iallawing future cash flows to be generated over the next five years from the uge or ts intangible assets: Future Period Franchise Patent Trade Name Print Done s 340,000S Year 1 Year 2 Ynar 3 Year4 Year 5 282,000 820,000 710,000 690,000 550,000 388,000 3,138,000 Step 1: Franchise Patent Trade Narne No Print Done Step 1 recuired? Carrying value at year-end Undisccunted future cash flaws $808,600393,000 16,000 859,000 500,000 48,000 29.500 Impairment indicated S 80B.500 S 393,000 Tola Now, complate step 2 of the impaiment test for each intangble asset. Selact whather step 2 of the test is required on the firstline, (If the test is not required, leave all rem mpairmant loss input call blank in that column. LUisa the presant valun and future valn tables, the formula method, a financial calculator, or a sproadshant for your places, Xxxxoxx. Round inlemedary calculations and your final arnswers to the nearest whole dellar.) Step 2: Patent Trade name Print Done e8 Yes Step 2 recuired Fair value at yeer-end Carrying value al year-end Impairment loss
