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P12-8 Meridan Golf and Sports was formed on July 1, 2017, when Steve Powerdriver purchased Old Master Golf Corporation. Old Master provides video golf instruction

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P12-8 Meridan Golf and Sports was formed on July 1, 2017, when Steve Powerdriver purchased Old Master Golf Corporation. Old Master provides video golf instruction at kiosks in shopping malls. Powerdriver's plan is to make the instruction business part of his golf equipment and accessory stores. Powerdriver paid $650,0100 cash for Old Master. At the time of purchase, Old Master's balance sheet reported assets of $550,000 and liabilities of $100,000 (shareholders' equity was $450,000). The fair value of Old Master's identifiable assets was estimated to be 5700,000. Included in the identifiable assets was the Old Master trade name with a fair value of $13,000 and a copyright on some instructional books with a fair value of 525,030. The trade name had a remaining legal life of five years and can be renewed indeli- nitely at nominal cost. The copyright had a remaining life of 10 years. Instructions Assume that Meridan Golf and Sports is a private company reporting under ASPE. (n) Prepare the intangible assets section of Meridan Golf and Sports at December 31, 2017. How much amortization expense is included in Meridian's income for the year ended December 31, 20179 Show all supporting calculations. (h) Prepare the journal entry to record the amortization expense for 2018. Prepare the intangible assets section of Meridan Golf and Sports at December 31, 2018. (No impairment needs to be recorded in 2018,) () At the end of 2019, Powerdriver is evaluating the role of the instructional business. Due to fierce competition from Internet sites and television, the Old Master reporting unit has been losing money and has a carrying amount (including goodwill) of $450,000 and fair value (including goodwill of $430,000. Powerdriver has collected the following information about the company's intangible meets Expected Cash Flows Intangible Asset [Undiscounted) Fair Value Trade name $11,030 $ 8,000 Copyright 30,000 Prepare the required journal entries, if any to record impairment on Meridan's intangible assets (Assume that amorti- ation for 2019 has been recorded.) Show supporting calculations, THE P12-9 Use the data provided in PIE-8. Assume instead that Meridan Golf and Sports is a public company. The rele- saint information for the impairment cea on December 11, 1019, is as follows: Future Net Carrying Cash Flows Value Amount (Undiscounted) in Use FV-Selling Costs Trade name $ 15,000 4 11.000 Copyright $ 3,000 23/138 30.000 $ 7.500 Cash-gangrating unit to which 27,000 24,000 goodwill was allocated 450.000 470 030 440,090 Clossale 120 060 Instructions Provide the calculations for the impairment test and any associated journal entry

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