Question 10 10 points Save Answer Kiwi Company is in the business of producing recordings of music performers. To help nurture young talent, Kiwi Company often covers some of the living costs of young songwriters, in exchange for exclusive ownership of the copyrights of any songs composed during the contract period. At the end of the contract - usually 10 years - Kiwi Company sells the copyright back to the composer at the fair market value of the song at that date, less 30%. In one instance, Jon Stevens signed into this program at age 25, and Kiwi Company incurred $100,000 in costs in exchange for the copyrights to 20 songs. At the end of the 10 years, the songs have a value of $200,000. Required: 3 marks: Assuming that Jon Stevens will live to the age of 80 years, calculate the amount of amortization of the copyrights that would be recorded each year on the books of Kiwi Company. 7 marks: When Jon is 35 years old, record the journal entry necessary on Kiwi Company's books to show the sale of copyrights back to him. Assume that Jon can pay cash for the copyrights. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Question 10 10 points Save Answer Kiwi Company is in the business of producing recordings of music performers. To help nurture young talent, Kiwi Company often covers some of the living costs of young songwriters, in exchange for exclusive ownership of the copyrights of any songs composed during the contract period. At the end of the contract - usually 10 years - Kiwi Company sells the copyright back to the composer at the fair market value of the song at that date, less 30%. In one instance, Jon Stevens signed into this program at age 25, and Kiwi Company incurred $100,000 in costs in exchange for the copyrights to 20 songs. At the end of the 10 years, the songs have a value of $200,000. Required: 3 marks: Assuming that Jon Stevens will live to the age of 80 years, calculate the amount of amortization of the copyrights that would be recorded each year on the books of Kiwi Company. 7 marks: When Jon is 35 years old, record the journal entry necessary on Kiwi Company's books to show the sale of copyrights back to him. Assume that Jon can pay cash for the copyrights. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)