The following information is for a copyright owned by Novak Corp , a publicly accountable entity, at December 31, 2020 Novak Corp applies IFRS Cost $4,334,000 Carrying amount 2,161,000 Expected future net cash flows (undiscounted) 2,023,000 Fair value 1,558,000 Assume that Novak Corp will continue to use this copyright in the future As at December 31, 2020, the copyright is estimated to have a remaining useful life of 8 years The copyrights value in use is $1,811,000 and its selling costs are $123,000 Your answer is partially correct Try again Prepare the journal entry, if any, to record the assets impairment at December 31, 2020 (Credit account titles are automatically indented when the 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 ) Date Account Titles and Explanation Debit Credit Dec 31, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct Try again Prepare the journal entry to record amortization expense for 2021 related to the copyright (Credit account titles are automatically indented when the 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 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct Try again The copyrights fair value at December 31, 2021, is $2 4 million Prepare the journal entry, if any, to record the increase in fair value (Credit account titles are automatically indented when the 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 ) Date Account Titles and Explanation Debit Credit Dec 31, 2021

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

The following information is for a copyright owned by Novak Corp., a publicly accountable entity, at December 31, 2020. Novak Corp. applies IFRS. Cost $4,334,000

The following information is for a copyright owned by Novak Corp., a publicly accountable entity, at December 31, 2020. Novak Corp. applies IFRS.

Cost		$4,334,000
Carrying amount		2,161,000
Expected future net cash flows (undiscounted)		2,023,000
Fair value		1,558,000

Assume that Novak Corp. will continue to use this copyright in the future. As at December 31, 2020, the copyright is estimated to have a remaining useful life of 8 years. The copyrights value in use is $1,811,000 and its selling costs are $123,000.


	Your answer is partially correct. Try again.

Prepare the journal entry, if any, to record the assets impairment at December 31, 2020. (Credit account titles are automatically indented when the 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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020

SHOW LIST OF ACCOUNTS

LINK TO TEXT


	Your answer is partially correct. Try again.

Prepare the journal entry to record amortization expense for 2021 related to the copyright. (Credit account titles are automatically indented when the 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

SHOW LIST OF ACCOUNTS

LINK TO TEXT


	Your answer is partially correct. Try again.

The copyrights fair value at December 31, 2021, is $2.4 million. Prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the 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.)