erlin Corporation owns a patent that has a carrying amount of $400,000. Merlin expects future net cash flows from this patent to total $250,000. The fair value of the patent is $310,000. Prepare journal entry, if necessary, to record the loss on Impairment

An impairment has occurred because expected net future cash flow (250,000) are less than the carrying amount ($400,000). The loss is measured as the difference between the carrying amount and fair value ($310,000).

Date  Description and Explanation            Debit     Credit

          Loss on impairment                         $90,000

                  Patents ($400,000 - $310,000)             $90,000

           (To record the loss on Impairment)

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)

answer; i believe the correct answer is (75 years);