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EXERCISE 12-14

 

(a)

December 31, 2004

 

Loss on Impairment...............................

1,100,000*

 

 

Copyrights....................................

 

1,100,000

 

*Carrying amount

$4,300,000

Fair value

3,200,000

Loss on impairment

$1,100,000

 

(b)

Copyright Amortization Expense............

320,000*

 

 

Copyrights......................................

 

320,000

 

*New carrying amount

$3,200,000

Useful life

10 years

Amortization per year

$ 320,000

 

(c) No entry is necessary. Restoration of any impairment loss is not permitted for assets held for use.