Homework Answers
Answer: Impairment loss is calculated when carrying value of intangible asset exceeds its fair value.
a)annual amortization expense is equal to 15300
b)carrying value of patent on December 31 2021 before impairment testing is 76500
c)impairment loss recognised in 2021 is 14130
adjusted caring value of patent on December 31 2021 is 62370
d)impairment loss recognised in 2022 is 1296
adjusted carrying value of patent on December 31 2022 is 48600
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