. . WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for cash. The...

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. . WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for cash. The expected total useful life of the Copyright is 10 years. Assume that the Residual Value of the Copyright is always $0 (i.e., Zero). . On 1 January 2019 WATERVILLE Company carries out an Impairment Test on the Copyright. The Value in Use of the Copyright is $10,000,000, the Fair Value is $6,000,000 and the costs to sell are $500,000. Assume that the expected total useful life of the Copyright remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000. The firm uses Straight Line Amortization. Assume that the Accounting year-end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Required: a. Show the Journal Entries required by WATERVILLE Company on: i. 1 January 2018 ii. 31 December 2018 iv. V. vi. 1 January 2019 31 December 2019 1 January 2020. 31 December 2020 Clearly show all workings. b. Show the Financial Statement Extracts for the year-ended 31 December 2020. . . WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for cash. The expected total useful life of the Copyright is 10 years. Assume that the Residual Value of the Copyright is always $0 (i.e., Zero). . On 1 January 2019 WATERVILLE Company carries out an Impairment Test on the Copyright. The Value in Use of the Copyright is $10,000,000, the Fair Value is $6,000,000 and the costs to sell are $500,000. Assume that the expected total useful life of the Copyright remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000. The firm uses Straight Line Amortization. Assume that the Accounting year-end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Required: a. Show the Journal Entries required by WATERVILLE Company on: i. 1 January 2018 ii. 31 December 2018 iv. V. vi. 1 January 2019 31 December 2019 1 January 2020. 31 December 2020 Clearly show all workings. b. Show the Financial Statement Extracts for the year-ended 31 December 2020. . . WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for cash. The expected total useful life of the Copyright is 10 years. Assume that the Residual Value of the Copyright is always $0 (i.e., Zero). . On 1 January 2019 WATERVILLE Company carries out an Impairment Test on the Copyright. The Value in Use of the Copyright is $10,000,000, the Fair Value is $6,000,000 and the costs to sell are $500,000. Assume that the expected total useful life of the Copyright remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000. The firm uses Straight Line Amortization. Assume that the Accounting year-end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Required: a. Show the Journal Entries required by WATERVILLE Company on: i. 1 January 2018 ii. 31 December 2018 iv. V. vi. 1 January 2019 31 December 2019 1 January 2020. 31 December 2020 Clearly show all workings. b. Show the Financial Statement Extracts for the year-ended 31 December 2020. . . WATERVILLE Company bought a Copyright for $20,000,000 on 1 January 2018 for cash. The expected total useful life of the Copyright is 10 years. Assume that the Residual Value of the Copyright is always $0 (i.e., Zero). . On 1 January 2019 WATERVILLE Company carries out an Impairment Test on the Copyright. The Value in Use of the Copyright is $10,000,000, the Fair Value is $6,000,000 and the costs to sell are $500,000. Assume that the expected total useful life of the Copyright remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000. The firm uses Straight Line Amortization. Assume that the Accounting year-end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Required: a. Show the Journal Entries required by WATERVILLE Company on: i. 1 January 2018 ii. 31 December 2018 iv. V. vi. 1 January 2019 31 December 2019 1 January 2020. 31 December 2020 Clearly show all workings. b. Show the Financial Statement Extracts for the year-ended 31 December 2020.