ACC – Barkley Corp. obtained a trade name in January 2009

Barkley Corp. obtained a trade name in January 2009, incurring legal costs of $15,000. The

company amortizes the trade name over 8 years. Barkley successfully defended its trade

name in January 2010, incurring $4,900 in legal fees. At the beginning of 2011, based on new

marketing research, Barkley determines that the fair value of the trade name is $12,000.

Estimated total future cash flows from the trade name are $13,000 on January 4, 2011.

Instructions

Prepare the necessary journal entries