Impairment of Copyrights

question 130

Essay

Impairment of copyrights.Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2014. Assume Wamser will continue to use this asset in the future. As of December 31, 2014, the copyrights have a remaining useful life of 5 years.

Instructions

(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2014.
(b) Prepare the journal entry to record amortization expense for 2015.
(c) The fair value of the copyright at December 31, 2015 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value.

Distinguish between different classifications of the law and their significance.

Recognize the supremacy of federal statutes over state laws as per the U.S. Constitution.

Know the role of William Blackstone in defining law and understand the concept of common law.

Understand common law and civil law systems, and the processes involved in each.

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Definitions:

Traditional Cost System

A costing method that allocates overhead costs based on a single volume-based cost driver, such as labor hours or machine hours.

Purchase Order

A document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Batch-level Activity

Refers to tasks that are performed each time a batch is processed, affecting multiple units of product but not directly correlated to each individual unit.

Departmental Overhead Rates

Specific rates used to allocate overhead costs to products or services based on the expenses incurred by different departments.