Presented below is information related to copyrights owned by Daisy Company at December 31, 2017. Cost $8, 600,000 Carrying amount 4, 300,000 sum of undiscounted expected future net cash flows 4,000,000 Fair value 3, 200,000 Required: Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. The company does not use accumulated amortization accounts. Prepare the journal entry to record amortization expense for 2018 related to the copyrights. Be sure to provide details of the process you applied to determine whether the asset is impaired, and if so, the amount of the impairment. M Wolfsheim Shale Co has patent on extracting oil from shale rock. Unfortunately, several recent non-shale oil discoveries have negatively affected the demand for shale oil technology. The company therefore develops the following information to assess whether its patent is impaired, and if so, what the amount of the impairment loss is: Carrying amount of patent 55,00 Sum of the expected net cash flows (undiscounted) 35,000 Fair value of the patent 25,00 Required: Prepare the journal entry for the asset impairment, if any. Be sure to provide details of the process you applied to determine whether the asset is impaired, and if so, the amount of the impairment. Wilson Company is negotiating to buy Jay Co., whose balance sheet is below. As part of the negotiations, the parties agree that fair value differs from book value of certain assets, as indicated in the column marked "Fair value". Wilson Company agrees to purchase Jay Co. for $380,000. Required: Prepare a journal entry to record Wilson's acquisition of Jay Company. Jay Co. BALANCE SHEET AS OF DECEMBER 31, 2017