Question TWO (25 marks) SHORT ANSWER QUESTIONS WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for cab The expected total useful life of the Copyright is 10 years. Assume that the Residual Value of the Copyright is always 50 (ie., Zero). On January 2019 WATERVILLE Company Sarries out an Impairment Test on the Copyright. The Value in Use of the Copyright is $10,000,000 the Fair Value is $6,000.000 and the costs to sell are $500,000. Assume that the expected total useful life of the Copyright remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000. The firm uses Straight Line Amortization. Assume that the Accounting year-end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Required: a. Show the Journal Entries required by WATERVILLE Company on: i. 1 January 2018) ii. 31 December 2018 iii. 31 December 2019 iv. V. vi. 1 January 2019 1 January 2020. 31 December 2020 Clearly show all workings. b. Show the Financial Statement Extracts for the year-ended 31 December 2020. SOLUTION TO QUESTION TWO: WRITE ON BOTH SIDES OF THE PAGE