On January 2, 2017, Flounder Corp. reported the following intangible assets: (1) copyright with a book value of $21,500 and (2) a trade name with a book value of $6,000. The remaining life of the trade name is 5 years and can be renewed indefinitely over the nominal value. The remaining life of the copyright is 10 years.

On December 31, 2017, Flounder evaluated intangible assets for possible impairment and developed the following information.

		Estimated No Discounts Expected Future Cash Flows				Estimated Fair Value
Copyright			$29,300			$22,600
Commercial title			7.500			3.700

Prepare required journal entries for Flounder's intangible assets as of December 31, 2017.

December 31		debt number	Credit#
	(To record the amortization expense)
DC 31
	(To record an impairment loss)

Answer rating: 100% (QA)

Amortization expense for copyright The copyright has a remaining life of 10 years and was acquired o... View the full answer