Bailey Company was formed in January $2017$ and is preparing its financial statements under GAAP for the first time at the end of $2019.$ Its general ledger at December $31,2019,$ includes the following assets:

Patent $$120,000$

Copyright $140,000$

Trade name $150,000$

Computer software $90,000$

Start$-$up costs $30,000$

Intellectual capital $150,000$

Goodwill $90,000$

As the recently hired accountant for Bailey, you have been asked to make sure that the company$$s accounting for intangible assets follows GAAP. Based on your investigation, you determine the following:

$$ The patent acquired in January $2019$ has an expected life of $15$ years and no residual value, and it will generate approximately equal benefits each year.

$$ Bailey will use the copyright and trade name for the foreseeable future.

$$ The computer software was purchased in January $2019$ and is used in the Bailey$$s $20$ offices around the country. It is expected to be replaced with new software at the beginning of $2021.$

$$ Bailey previously capitalized the expected value of its $$human resources$$ as intellectual capital, with a corresponding increase in additional paid$-$in capital.

$$ The trade name and goodwill arose from an acquisition of a subsidiary company at the end of $2018.$ Because of a significant adverse change in the market, you decide that both assets are impaired. You estimate that the fair value of the trade name is $$50,000.$ The subsidiary company, which qualifies as a reporting unit, has a book value of $$500,000,$ including the goodwill of $$90,000.$ You estimate that the subsidiary$$s fair value is $$430,000.$

Required:

Assume no adjusting entries have been made. Prepare journal entries to provide the correct information under GAAP at the end of $2019.$