Presented below is information related to copyrights owned by Lord Corporation at December 31, 2019. Cost.......... $
Question:
Presented below is information related to copyrights owned by Lord Corporation at December 31, 2019.
Cost…………….......... $ 2,700,000
Carrying amount…….. 2,350,000
Recoverable amount…. 1,600,000
Assume Lord will continue to use this asset in the future. As of December 31, 2019, the copyrights have a remaining useful life of 4years.
What is the correct journal entry (if any) to record amortization expense for 2020?
a. | Dr. Amortization Expense 1,600,000 Cr. Copyrights 1,600,000 | |
b. | Dr. Amortization Expense 2,700,000 Cr. Copyrights 2,700,000 | |
c. | Dr. Amortization Expense 400,000 Cr. Copyrights 400,000 | |
d. | Dr. Amortized Copyrights 400,000 Cr. Amortization Expense 400,000 |
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso