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On 12/31/2019, Hufflepuff Co. had a trademark with book value of $10,500. The trademark was estimated to bring $500 each year indefinitely in the future.

On 12/31/2019, Hufflepuff Co. had a trademark with book value of $10,500. The trademark was estimated to bring $500 each year indefinitely in the future. The fair value of the trademark was $10,000. What amounts of amortization expense and impairment loss would Hufflepuff record for this trademark on 12/31/2019?

.

$500 amortization expense and $500 impairment loss

B.

$500 amortization expense and $0 impairment loss

C.

$0 amortization expense and $500 impairment loss

D.

$0 amortization expense and $0 impairment loss

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