Answer:
The following information in missing in question;
1. Purchased a copyright for $60,000
2. Legal fees for successful defense of the copyright purchase were $17,100
Loss resulting from impairment is $5,400
Explanation:
An impairment loss is recognized when the carrying amount is greater than both the future cash flows (recoverability test) and fair value.
Carrying Value
Cost ($60,000 + $17,100) = $77,100
Less: Accumulated Amortization = ($14,700)
Carrying Value = $62,400
As carry value of $62,400 is greater than both the future cash flows of $60,000 and fair value of $57,000, therefore copyright is impaired.
Impairment Loss = Carrying Value - Fair Value
= $62,400 - $57,000
= $5,400
