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 (excluding the Tradenames and Copyrights) is now $460,000. The fair value of the Old Master reporting unit is $380,000. Magilke has collected the following information related to the company's intangible assets. Expected Cash Flows (undiscounted) Intangible Asset Fair Values Trade names $12,900 $4,300 Copyrights 43,000 38,000 Prepare the journal entries required, if any, to record impairments on Kingbird 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.)

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 (excluding the Tradenames and Copyrights) is now $460,000. The fair value of the Old Master reporting unit is $380,000. Magilke has collected the following information related to the company's intangible assets. Expected Cash Flows (undiscounted) Intangible Asset Fair Values Trade names $12,900 $4,300 Copyrights 43,000 38,000 Prepare the journal entries required, if any, to record impairments on Kingbird 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.)

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 29P

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