Company C received a patented technology invested by others on January 1, 2006, with a market price of 2 million yuan, and owned 1.2 million shares of Company C.

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Analysis:

On January 1, 2006, investment in intangible assets was accepted:

Borrow: Intangible assets-patented technology 200

Credit: Equity 120

Capital reserve - equity premium 80

Annual amortization of intangible assets = 200÷5=400,000 yuan

2006 December On December 31, 2007,

Debit: administrative expenses (or manufacturing expenses and other related accounts) 40

Credit: accumulated amortization 40

December 31, 2007 ,

Debit: administrative expenses 40

Credit: accumulated amortization 40

Net book value = 200-40-40=1.2 million yuan

The recoverable amount is less than the net book value, and impairment occurs, and the amount of impairment = 1.20-90 = 300,000 yuan

Debit: asset impairment loss 30

Credit: deduct for intangible assets Value reserve 30

The annual amortization amount = 90/3 = 300,000 yuan.

On December 31, 2008,

Debit: administrative expenses 30

Credit: accumulated amortization 30

Book value = 90 -30=600,000 yuan, which is greater than the recoverable amount, and impairment occurs. Impairment amount=60-40=200,000 yuan

Debit: Asset impairment loss 20

Credit: Provision for impairment of intangible assets 20

At the beginning of 2009,

Debit: bank deposit 50

Accumulated amortization 110

Intangible asset impairment Loss 50

Credit: taxes payable - business tax payable 2.5 (50×5)

Intangible assets 200

Non-operating expenses 7.5

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