Future cash flow information and fair market values for intangible assets are as follows:

Franchise: Expected future cash flows: $ 30,000, Fair value: $ 25,000

Patent: Expected future cash flows: $ 70,000,Fair value: $ 60,000

Goodwill: The Lucky Machinery Division reports the following amounts on its balance sheet dated 12/31/x2: Current Assets $ 150,000, Noncurrent Assets 800,000, Current Liabilities 200,000, Noncurrent Liabilities 350,000

The recorded amount of the net assets (excluding Goodwill) for the Lucky Machinery Divisionis the same as fair value except for the following:

The fair value of Machinery is $ 50,000 higher than its carrying value.

The fair value of the patent is stated above: $ 60,000 [Hint: The difference between the carrying value and the fair value of the patent as of 12/31/x2 is also part of thedetermination of the fair value of the net identifiable assets at 12/31/x2.]

For the Lucky Machinery Division , assume the fair value at 12/31/x2 is: $ 380,000

Prepare schedules showing the individual components and final balances for the following:

1. Computation of impairment losses on intangible assets for the year ended 12/31/x2.