Concord Corporation owns a patent that has a carrying amount of $270,000. Concord expects future net cash flows from this patent to total $200,000. The fair value of the patent is $125,000. Prepare Concord's journal entry to record the loss on impairment

The carrying amount of $270,000 is greater than fair value $125,000.

To measure the impairment loss, just do:

= Carrying Value - Fair Value

= $270,000 - $125,000

= $145,000

Therefore, the journal entry is as follows:

Loss on impairment A/c Dr. $145,000

To Patent $145,000

(To record the loss on impairment)