Presented below is information related to copyrights owned by Taylor Corporation at December 31, 2020.

Carrying amount 7,000,000

Expected future net cash flows 6,200,000

Fair value 3,300,000

Assume Taylor will continue to use this asset in the future. As of December 31, 2020, 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, 2020.

(b) Prepare the journal entry to record amortization expense for 2021.

(c) The fair value of the copyright at December 31, 2021 is $3,400,000. Prepare the journal entry, under GAAP, necessary to record this increase in fair value.