flows from the use of the asset are expected to be $560,000. The fair
value of the equipment is $448,000. Prepare the journal entry, if any, to
record the impairment loss. Brief Exercise 12-8 Concord Corporation
purchased Johnson Company 3 years ago and at that time recorded
goodwill of $330,000. The Johnson Division’s net assets, including the
goodwill, have a carrying amount of $700,000. The fair value of the
division is estimated to be $668,000 and the implied goodwill is
$298,000. Prepare Concord journal entry to record impairment of the
goodwill. Exercise 12-3 Joni Marin Inc. has the following amounts
reported in its general ledger at the end of the current year. Organization
costs $24,400 Trademarks 16,900 Discount on bonds payable
37,400 Deposits with advertising agency for ads to promote
goodwill of company 12,400 Excess of cost over fair value of net
identifiable assets of acquired subsidiary
77,400 Cost of equipment
acquired for research and development projects; the equipment has an
alternative future use 87,400 Costs of developing a secret formula for a
product that is expected to be marketed for at least 20 years 83,800 (a)
On the basis of this information, compute the total amount to be reported
by Marin for intangible assets on its balance sheet at year-end. Brief
Exercise 13-2 Ivanhoe Company borrowed $30,000 on November 1,
2017, by signing a $30,000, 8%, 3-month note. Prepare Ivanhoe’s
November 1, 2017, entry; the December 31, 2017, annual adjusting
entry; and the February 1, 2018, entry. Brief Exercise 13-5 Riverbed
Corporation made credit sales of $19,800 which are subject to 7% sales
tax. The corporation also made cash sales which totaled $28,462
including the 7% sales tax. Prepare the entry to record Riverbed’s credit
sales. Brief Exercise 13-10 Windsor Inc. is involved in a lawsuit at
December 31, 2017. Prepare the December 31 entry assuming it is
probable that Windsor will be liable for $862,200 as a result of this suit.
Brief Exercise 13-13 Martinez Factory provides a 2-year warranty with
one of its products which was first sold in 2017. Martinez sold $930,400
of products subject to the warranty. Martinez expects $124,050 of
warranty costs over the next 2 years. In that year, Martinez spent
$70,460 servicing warranty claims. Prepare Martinez’s journal entry to
record the sales (ignore cost of goods sold) and the December 31