Assume that Jordan ​Enterprises's radio broadcast license is renewable at the end of each 10​-year term and management has provided evidence that approval of the renewal is highly probable. In this​ case, the broadcast license qualifies as an​indefinite-life intangible asset and is not subject to amortization.​ Therefore, the firm carries the broadcast license at its original cost of $786,000. On December ​31, 2015 the company noted substantial declines in radio advertising revenues over the past year due to expanded satellite radio​subscriptions, Internet​ broadcasts, and the use of iPod players. Based on the required annual review and consideration of the available impairment​ indicators, management believes that it is more likely than not that the broadcast license may be impaired.​ Therefore, the company must test the broadcast license for impairment. Similar broadcast licenses have been sold in auctions for $676,000.
Assuming that renewal of the broadcast license is probable for this​ indefinite-life intangible​ asset, analyze the accounting for impairment and prepare the journal entries.
1.) Conduct the impairment test indicated for​indefinite-life intangible asset at the end of the year and determine the impairment​ loss, if any. ​(If you selected​ "No" that an impairment loss is not​ indicated, then leave the impairment loss input cell blank. Show a loss with a parentheses or minus​ sign.)
2.) Next, prepare the journal entry required to record any impairment loss. ​(Record debits​ first, then credits. Exclude explanations from any journal entries. If no entry is required select​ "No Entry​ Required" on the first line of the journal entry table and leave all remaining cells in the table​blank.)