Please answer the questions in files

Impairment of copyrights.

Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2014.

Cost $4,500,000

Carrying amount 3,900,000

Expected future net cash flows 3,500,000

Fair value 2,400,000

Assume Wamser will continue to use this asset in the future. As of December 31, 2014, the copyrights have a remaining useful life of 5 years.

Instructions

(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014.

(b) Prepare the journal entry to record amortization expense for 2015.

(c) The fair value of the copyright at December 31, 2015 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value.

Impairment of copyrights. Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2014. Cost $4,500,000 Carrying amount 3,900,000 Expected future net cash flows 3,500,000 Fair value 2,400,000 Assume Wamser will continue to use this asset in the future. As of December 31, 2014, the copyrights have a remaining useful life of 5 years. Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014. (b) Prepare the journal entry to record amortization expense for 2015. (c) The fair value of the copyright at December 31, 2015 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value. Intangible assets. The following transactions involving intangible assets of Minton Corporation occurred on or near December 31, 2014. Complete the chart below by writing the journal entry (ies) needed at that date to record the transaction and at December 31, 2015 to record any resultant amortization. If no entry is required at a particular date, write "none needed." On Date of Transaction 2015 1. Minton paid Grand Company $500,000 for the exclusive right to market a particular product, using the Grand On December 31, name and logo in promotional material. The franchise runs for as long as Minton is in business. 2. Minton spent $600,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 3. In January, 2015, Minton's application for a patent (#2 above) was granted. Legal and registration costs incurred were $180,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years. 4. Minton incurred $140,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2018. 5. Minton incurred $480,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $252,000, is deemed worthless. 6. Minton paid Sneed Laboratories $104,000 for research and development work performed by Sneed under contract for Minton. The benefits are expected to last six years. Goodwill, impairment. On May 31, 2015, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: Current assets Noncurrent assets $ 900,000 2,700,000 Total assets $3,600,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $ 600,000 500,000 2,500,000 $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $2,800,000. At December 31, 2015, Hall reports the following balance sheet information: Current assets $ 800,000 Noncurrent assets (including goodwill recognized in purchase) 2,400,000 Current liabilities (700,000) Long-term liabilities (500,000) Net assets $2,000,000 It is determined that the fair value of the Hall division is $2,200,000. The recorded amount for Hall's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $200,000 above the carrying value. Instructions (a) Compute the amount of goodwill recognized, if any, on May 31, 2015. (b) Determine the impairment loss, if any, to be recorded on December 31, 2015. (c) Assume that the fair value of the Hall division is $2,050,000 instead of $2,200,000. Prepare the journal entry to record the impairment loss, if any, on December 31, 2015