Hannah Company purchased an intangible asset for $$450,000$ on January $1$ of Year $1.$ The asset is assumed to have a $15-$year useful life with zero salvage value. Amortization expense is computed using the straight$-$line method. On January $1$ of Year $2,$ the asset was evaluated to determine whether it was impaired. As of January $1$ of Year $2,$ the intangible asset was expected to generate future cash flows of $$25,000$ per year $($at the end of the year$)$ for the remaining $14$ years of its life. The appropriate discount rate is $13\%$ compounded annually.What impairment loss should be recognized in Year $2?$$$100,000$$$262,438$$$70,000$$$185,942$

Kaylyn Company purchased an intangible asset for $$450,000$ on January $1$ of Year $1.$ On January $1$ of Year $2,$ the asset was evaluated to determine whether it was impaired. As of January $1$ of Year $2,$ the intangible asset was expected to generate future cash flows of $$35,000$ per year $($at the end of the year$).$ The appropriate discount rate is $13\%$ compounded annually. This intangible asset has an indefinite, or infinite, life.What impairment loss should be recognized in Year $2?$$$0$$$123,343$$$100,000$$$180,769$

Several years ago, Big Company acquired Small Company. As part of the acquisition, $$5,000$ in goodwill was recognized; this goodwill was assigned to Big Companys Internet Applications reporting unit. During Year $5,$ the Internet Applications reporting unit reported revenues of $$8,000.$ Publicly traded companies with operations similar to those of the Internet Applications unit had price$-$to$-$revenue ratios averaging $1\mathrm{.}70.$ The book values of the assets and liabilities of the Internet Applications reporting unit are as follows. Book ValuesIdentifiable Assets$$19,500$Goodwill$5,000$Liabilities$6,5000$What goodwill impairment loss should be recognized in Year $5?$$$2,100$$$5,000$$$600$$$4,400$