Fredrick Wilson Company determined that one of its finite- life intangible assets is impaired. The assets net

Question:

Fredrick Wilson Company determined that one of its finite- life is impaired. The asset’s net carrying value on the date of the impairment is $ 905,000. Fredrick Wilson does not use a separate accumulated amortization account. In order to estimate fair value, Fredrick Wilson must use the model. The company projected the asset’s future cash flows as follows.
Future Period Cash Flow Projection
Year 1 ………………………$ 400,000
Year 2 ……………………… 250,000
Year 3 ……………………… 140,000
Year 4………………………. 60,000
Total………………………... $ 850,000
Assuming a of 8%, prepare the journal entry to record the impairment loss (show all supporting computations). Intangible Assets
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