The following information is available for Nexgen Belize.

Purchased a copyright on January $1,2021$ for $$60,000.$ It is estimated to have a $10-$year life.

On July $1,2021,$ legal fees for successful defense of the copyright purchased on January $1,2021,$ were $$17,100.$

Instructions

$($a$)$ Prepare the journal entries to record all the events related to the copyright during $2021.(8$ Points$)$

$($b$)$ At December $31,2022,$ an impairment test is performed on the copyright purchased in $2020.$ It is estimated that the net cash flows to be received from the copyright will be $$60,000,$ and its fair value is $$57,000.$ The accumulated amortization at the end of $2022$ was $$14,700.$ Compute the amount of impairment, if any, to be recorded on December $31,2022.(4$ Points$)$