Question

Marin Golf Inc. was formed on July 1, 2019, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $780,000 cash for Old Master. At the time, Old Master’s balance sheet reported assets of $670,000 and liabilities of $200,000 (thus owners’ equity was $470,000). The fair value of Old Master’s assets is estimated to be $830,000. Included in the assets is the Old Master trade name with a fair value of $8,000 and a copyright on some instructional books with a fair value of $38,400. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years.

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Prepare the intangible assets section of Marin Golf Inc. at December 31, 2019.

MARIN GOLF INC. Intangibles Section of Balance Sheet choose the accounting period                                                                      For the Month Ended December 31, 2019December 31, 2019For the Year Ended December 31, 2019
enter a balance sheet item					$enter a dollar amount
enter a balance sheet item					enter a dollar amount
enter a balance sheet item					enter a dollar amount
select a closing section name                                                                      Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity					$enter a total amount for this section

How much amortization expense is included in Marin income for the year ended December 31, 2019?

Amortization expense

$enter Amortization expense in dollars

eTextbook and Media

List of Accounts

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Prepare the journal entry to record amortization expense for 2020. Prepare the intangible assets section of Marin Golf Inc. at December 31, 2020. (No impairments are required to be recorded in 2020.) (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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

MARIN GOLF INC. Intangibles Section of Balance Sheet choose the accounting period                                                                      For the Month Ended December 31, 2020For the Year Ended December 31, 2020December 31, 2020
enter a balance sheet item					$enter a dollar amount
enter a balance sheet item					enter a dollar amount
enter a balance sheet item					enter a dollar amount
select a closing section name                                                                      Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' Equity					$enter a total amount for this section

eTextbook and Media

List of Accounts

Partially correct answer iconYour answer is partially correct.

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		$12,000		$4,000
Copyrights		40,000		35,000

Prepare the journal entries required, if any, to record impairments on Marin intangible assets. (Assume that any amortization for 2021 has been recorded.) (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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Answer 1

pompare the intangible asuals section of Madin Golf ie at Dec 31, 2014 8000 Balance sheer Toode names Copy lights Gmacbº). 37,920 110,000 + Computation of more g-masie copy orghese Amooizoton ó rofight for 2014,- $ 38,400) Oyatsiz - Costo Copy og ) 1480 at DRC 313 Cost of copyalight of date of puchar - mohon o copy oght for 2019 38 400 - 480 + Goodeon Meascramen 37,920 -> Foto Vcore of retasseis: Fair vake of assets-fato acon of abilities $ 830000 - 200000 ->$ ,00 -> vabe assigned to geal parchae paio - eslovacote of tasets $ 780000'- $ 670000 -> 10, - Amoo+Prato Capense fs Pncoded the moladolf income Fow the year ended Dec 31, 2019 $ 480 . Poepase Journal entoles to zerood amoottofon expense Foo 2020, prepare the potengeble assets seelfen - Mardin Golfh at Dec 31, 2020 Amortization pense AC Oo $960 TO Copy ofghts ALC $960 -> Copy ofghts = $ 38,40/40 = $ 960 -7 Thor: arall vero of amooffratfon upon.se foo on the grann. thee Ps no arroorza Hoo foo too gondo) ou to taaderame which is considord as doampe the onlangible Balance Sheet 300 Toode names 36960 Coprofights 110,000 Goodelu 154,960 -> Amodizo Copyofight for 2019, 2020:(0438400/uo) #1:5yte) - Cast of copy ofight at at 31st _ Cost of Copyoight at date of Plochase- amortiza Ho - Copyrofght foo 2019,2020 5 38400 - 1440 >> $ 36,960 • At the end of the 2021 Martin golf es eu 2021 Marfin golf is evaluating the results al 2 Tuskustal Instowctthal business. Dre to Flerce coperto Foom one and teler Ps?on (eg channel), the old maste reporting Loot has been losing money. Its book value is now repeting $ 410,000. The fair value the old master sepoolne Unit B $ 330,000. Montgolf has to folloon Pafooma in velike to the compay's entangable assets Intangibe assets Expected cash flows fais values $ Condicoonted) Toodo names 12.000 4000 Cquoights 10.000 35,000 Tournal eotofes sequired PF ony to cool impofoments on Magike Pataug ble assets. CAssume awy amoutra for Fow 802, ho been recorded) loss an empafoment nic coe 8uooo To Goodwill Ak $ 80000 TO 7ado names AK $ 4.000 ->rer den trable asset Cexdedia ada $UIO - $1000 mm → implica rade or gordur - Falo vode of oxumadeo fool 60+ dohlable asers CExccufig goda) - $ 330000 300000 => $ 30000 > Goodoofli $10000 - $ 30000 = $ 80000 toode names. - $ 8000 - $ uooo - $ 4000