Presented below is information related to copyrights owned by Wildhorse Company at December 31, 2020. Cost $8,540,000 Carrying amount 4,360,000 Expected future net cash flows 4,080,000 Fair value 3,570,000 Assume that Wildhorse Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not use accumulated amortization accounts.

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a Account Titles and Explanation Debit Credit Loss on ... View the full answer