Presented below is information related to copyrights owned by Crane Copnat at December 31, 2017.

Cost $8,540,000

Carrying amount 4,320,000

Expected future net cash flows 3,990,000

Fair Value 3,250,000

Assume that Crane Company will continue to use this copyright in the future. As of December 31, 2017, the copyrights is estimated to have a reminding useful life of 10 years.

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

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Prepare the Journal entry to record amortization expenses for 2018 related to the copyrights.

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

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