Ford Corporation estimates the fair value of its trademark is estimated to be $560,000. The current carrying value of the trademark on the books is $610,000. Yana expects that over the remaining useful life of the trademark, the trademark will help to generate $620,000 in net cash flows.     Does Ford need to make any adjustments at year-end to properly present the trademark on the balance sheet?

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter11: Long-term Assets
Section: Chapter Questions
Problem 10PB: For each of the following unrelated situations, calculate the annual amortization expense and...
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Ford Corporation estimates the fair value of its trademark is estimated to be $560,000. The current carrying value of the trademark on the books is $610,000. Yana expects that over the remaining useful life of the trademark, the trademark will help to generate $620,000 in net cash flows.

 

 

Does Ford need to make any adjustments at year-end to properly present the trademark on the balance sheet?

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