(1) Trademark right cost = 1.2 million + 60,000 = 1.26 million
Debit: intangible assets-trademark right 1.26 million
Loan: bank deposit 126 Ten thousand
(2) Monthly amortization=1.26 million/10 years/12=10,500
Debit: Management expenses-amortization of intangible assets 10,500
Credit: Accumulated amortization 10,500
(3) 1.26 million-378 (accumulated amortization during 2005.1.1-2007.12.31 10,500*3 years*12)-estimated recoverable amount 800,000= 82,000
Debit: Asset impairment loss - Provision for impairment of intangible assets 82,000
Credit: Provision for impairment of intangible assets 82,000
2008 Annual amortization of intangible assets = book value 800,000/7 years = 114,300
2009 is the same as 2008
Debit: bank deposit 500,000
Cumulative amortization Sales of 606,600
Provision for impairment of intangible assets of 82,000
Non-operating expenses - loss on disposal of non-current assets of 96,400
Credit: intangible assets of 1.26 million
p>Taxes payable - business tax payable 25,000