At the end of 2026, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (eg, the Golf Channel), the Old Master reporting unit has been losing money. The fair value of the Old Master reporting unit is $400,000. Magilke has collected the following information related to the company's intangible assets. Intangible Asset Trade names Copyrights Expected Cash Flows (undiscounted) Prepare the journal entries required, if any, to record impairments on Teal Mountain intangible assets. Assume that any amortization for 2026 has been recorded and that the carrying value of the reporting unit is $480,000 (which reflects recognition of any impairments other than goodwill). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) Account Tities and Explanation Loss on impairment Trade Names $12,900 43,000 Goodwill Fair Values $4,300 38,000 Debit Credit

At the end of 2026, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (eg, the Golf Channel), the Old Master reporting unit has been losing money. The fair value of the Old Master reporting unit is $400,000. Magilke has collected the following information related to the company's intangible assets. Intangible Asset Trade names Copyrights Expected Cash Flows (undiscounted) Prepare the journal entries required, if any, to record impairments on Teal Mountain intangible assets. Assume that any amortization for 2026 has been recorded and that the carrying value of the reporting unit is $480,000 (which reflects recognition of any impairments other than goodwill). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) Account Tities and Explanation Loss on impairment Trade Names $12,900 43,000 Goodwill Fair Values $4,300 38,000 Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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