Question

At the end of 2021, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf Channel), the Old Master reporting unit has been losing money. Its book value is now $410,000. The fair value of the Old Master reporting unit is $330,000. Magilke has collected the following information related to the company's intangible assets. Intangible Asset Expected Cash Flows (undiscounted) Fair Values Trade names $14,700 $4,900 Copyrights $49,000 $44,000 Prepare the journal entries required, if any, to record impairments on Windsor intangible assets. (Assume that any amortization for 2021 has been recorded.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

          At the end of 2021, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf Channel), the Old Master reporting unit has been losing money. Its book value is now $410,000. The fair value of the Old Master reporting unit is $330,000. Magilke has collected the following information related to the company's intangible assets.

Intangible Asset
Expected Cash Flows (undiscounted)
Fair Values
Trade names
$14,700
$4,900
Copyrights
$49,000
$44,000

Prepare the journal entries required, if any, to record impairments on Windsor intangible assets. (Assume that any amortization for 2021 has been recorded.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Added by Mary J.

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