Presented below is information related to copyrighted owned by Crane company at December 31, 2017

cost $8,540,000

carrying amount 4,320,000

Expected future net cash flow 3,990,000

Fair value 3,250,000

Assume that crane company will continue to use this copyright in the future. As December 31, 2017, the copyright is estimated to have a remaining useful life of 10 years.

Prepare the journal entry to record the impairment of the asset at December 31, 2017 the company does not use accumulated amortization accounts

Accounts Titles and Explanation Debit Credit

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Prepare the journal entry to record amortization expenses for 2018 related to copy right

Accounts Titles and Explanation Debit Credit

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The fair value of the copyrighted at December 31, 2018, is $3,590,000 Prepare the journal entry necessary to record the increase in fair value

Account Titles and Explanation Debit Credit

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