On December 31, 2012, Magily Company acquired the following three intangible assets : (a) A trademark for

Question:

On December 31, 2012, Magily Company acquired the following three :
(a) A trademark for $30,000. The trademark has seven years remaining in its legal life. It is anticipated that the trademark will be renewed in the future, indefinitely, without problem.
(b) for $150,000. The goodwill is associated with Magily's Abacus Manufacturing reporting unit.
(c) A customer list for $22,000. By contract, Magily has exclusive use of the list for five years. Because of market conditions, it is expected that the list will have economic value for just three years.
On December 31, 2013, before any adjusting entries for the year were made, the following information was assembled about each of the :
(a) Because of a decline in the economy, the trademark is now expected to generate cash flows of just $1,000 per year. The useful life of the trademark still extends beyond the foreseeable horizon.
(b) The cash flow expected to be generated by the Abacus Manufacturing reporting unit is $25,000 per year for the next 22 years. Book values and fair values of the assets and liabilities of the Abacus Manufacturing reporting unit are as follows:
_________________________________________Book Values _________Fair Values
Identifiable assets . . . . . . . . . . . . . . . . . . . . . . . . . . $270,000 ................... $300,000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 ............................ ?
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,000 ..................... 180,000
(c) The cash flows expected to be generated by the customer list are $12,000 in 2014 and $8,000 in 2015.
Instructions:
The appropriate for all items is 6%. Make all journal entries necessary on December 31, 2013, in connection with these three .
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