EXERCISE 12-14
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(a) |
December 31, 2004 |
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Loss on Impairment............................... |
1,100,000* |
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Copyrights.................................... |
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1,100,000 |
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*Carrying amount |
$4,300,000 |
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Fair value |
3,200,000 |
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Loss on impairment |
$1,100,000 |
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(b) |
Copyright Amortization
Expense............ |
320,000* |
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Copyrights...................................... |
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320,000 |
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*New carrying amount |
$3,200,000 |
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Useful life |
¸ 10 years |
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Amortization per year |
$ 320,000 |
(c) No entry is necessary.
Restoration of any impairment loss is not permitted for assets held for use.