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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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