Teal Mountain Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $850,000 cash for Old Master. At the time, Old Masters balance sheet reported assets of $630,000 and liabilities of $190,000 (thus owners equity was $440,000). The fair value of Old Masters assets is estimated to be $830,000. Included in the assets is the Old Master trade name with a fair value of $7,000 and a copyright on some instructional books with a fair value of $33,600. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years.

Prepare the intangible assets section of Teal Mountain Golf Inc. at December 31, 2019.

TEAL MOUNTAIN GOLF INC. Intangibles Section of Balance Sheet choose the accounting period December 31, 2019For the Year Ended December 31, 2019For the Month Ended December 31, 2019
Trade names					$7,000
Copyrights					$33,180
Goodwill					$210,000
Total Intangible Assets					$250,180

How much amortization expense is included in Teal Mountain income for the year ended December 31, 2019?

Amortization expense

$420

Journal entry to record amortization expense for 2020

Particulars	Debit (in $)	Credit (in $)
Copyright Amortization Expense	840
To Copyright (33,600 / 40)		840

For this year there is a full year of amortization on the copyright. However there is no amortization for the goodwill of the trade name, which is then cosidered as an indefinite life intangible

TEAL MOUNTAIN GOLF INC.

Intangibles Section of Balance Sheet

at December 31, 2020

Particulars	Amount (in $)
Trade Name	7,000
Copyright (net accumulated amortization of 1,260) (WN - 1)	32,340
Goodwill	210,000
Total Inangibles (WN - 2)	249,340

At the end of 2021, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf Channel), the Old Master reporting unit has been losing money. Its book value is now $480,000. The fair value of the Old Master reporting unit is $400,000. Magilke has collected the following information related to the companys intangible assets.

Intangible Asset		Expected Cash Flows (undiscounted)		Fair Values
Trade names		$12,900		$4,300
Copyrights		43,000		38,000

Prepare the journal entries required, if any, to record impairments on Teal Mountain intangible assets. (Assume that any amortization for 2021 has been recorded.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount