Question
Presented below is information related to copyrights owned by Sandhill Company at December 31, 2020. Cost $8,520,000 Carrying amount 4,430,000 Expected future net cash flows
Presented below is information related to copyrights owned by Sandhill Company at December 31, 2020.
| Cost | $8,520,000 | |
| Carrying amount | 4,430,000 | |
| Expected future net cash flows | 4,000,000 | |
| Fair value | 3,490,000 |
Assume that Sandhill Company will continue to use this copyright in the future. As of December 31, 2020, 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, 2020. The company does not use accumulated amortization accounts
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Fraud Examination
Authors: W. Steve Albrecht
6th Edition
1337619671, 978-1337619677
