Question $2$ Not complete

Marked out of $1\mathrm{.}25$

Computing Impairment of Intangible Assets

Stiller Company had the following information for its three intangible assets.

Patent: A patent was purchased for $$200,000$ on June $30$ of Year $1$ ; Stiller estimated the useful life of the patent to be $15$ years. On December $31$ of Year $3,$ the estimated future cash flows attributed to the patent were $$170,000.$ The fair value of the patent was $$150,000.$

Trademark: A trademark was purchased for $$10,000$ on August $31$ of Year $2.$ The trademark is considered to have an indefinite life. The fair value of the trademark on December $31$ of Year $3$ is $$5,000.$

Goodwill: Stiller recorded goodwill in January of Year $2,$ related to a purchase of another company. The carrying value of goodwill is $$60,000$ on December $31$ of Year $3.$ On December $31$ of Year $3,$ the segment for which the goodwill relates had a fair value of $$1,160,000.$ The book value of the net assets of the segment $($including goodwill$)$ is $$1,200,000.$

a$.$ Classify each of the intangible assets above as a finite life intangible or an indefinite life intangible.

Patent Finife life intangible

Trademark indefinte life intangible

Goodwill Indefinite life intangible

b$.$ Determine the carrying value of each intangible asset on December $31$ of Year $3,$ prior to testing for impairment. Assume that the company uses the straight$-$line method to amortize intangible assets, and no impairment was reported prior to Year $3.$

Note: Round each of your answers to the nearest whole dollar.

Carrying value of patent, Dec. $31,$ Year $3,$ before impairment testing

Carrying value of trademark, Dec. $31,$ Year $3,$ before impairment testing

Carrying value of goodwill, Dec. $31,$ Year $3,$ before impairment testing $

c$.$ Test each asset for impairment assuming that the qualitative assessment indicated that further impairment testing was warranted. Determine the carrying value of each asset on December $31$ of Year $3$ after impairment testing.

Note: Round each of your answers to the nearest whole dollar.

Carrying value of patent, DeC. $31,$ Year $3,$ after impairment testing

Carrying value of trademark, Dec. $31,$ Year $3,$ after impairment testing

Carrying value of goodwill, Dec. $31,$ Year $3,$ after impairment testing $