Metlock Golf Inc. was formed on July 1, 2014, when Matt Magilke purchased the Golf School Company. Golf School Company provides video golf…

Fair Values

$3,000

$25,000

Required:

·       For each of the items, what are possible reasons why no impairment was recorded in 2014 and 2015? (Provide references from the FASB codification.)

·       What considerations will be made to determine if impairment will be recorded in 2016? (Provide references from the FASB codification.)

·       How is anything related to intangibles would appear on the balance sheet and income statement on a comparative basis for 2016, 2015, and 2014?

·       What items will need to be monitored in future years that will continue to impact the carrying value of the intangibles.