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An intangible asset cost $300,000 on January 1, 2017. On January 1, 2018, the asset...

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Accounting

An intangible asset cost $300,000 on January 1, 2017. On January 1, 2018, the asset was evaluated to determine whether it was impaired. As of January 1, 2018, the asset was expected to generate future cash flows of $10,000 per year (at the end of each year). The appropriate discount rate is 5%. Assuming that the asset is deemed to have an indefinite useful life, record the journal entry for any impairment loss as of January 1, 2018.

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