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Assume that Blossom Inc., follows IFRS and uses the rational entity model. Calculate the carrying amount and recoverable amount. (Round answers to o decimal places,

image text in transcribedimage text in transcribed Assume that Blossom Inc., follows IFRS and uses the rational entity model. Calculate the carrying amount and recoverable amount. (Round answers to o decimal places, eg. 5,275.) Carrying amount of the licensing agreement Recoverable amount $ Is there an impairment loss? If yes, how much is the amount? (Round answer to O decimal places, eg. 5,275.) $ Blossom Inc. purchased a non-renewable licensing agreement for access to proprietary technology that allows it to produce bio-char from organic waste. When the 10-year licensing agreement was purchased 6 years ago there were no other companies operating in the space. However, numerous competitors have emerged in the industry as direct competitors to Blossom Inc. As a result of recent market entrants, the market demand for its bio-char products has been steadily declining. The company has the following information available related to the licensing agreement: Licensing agreement at Cost $124,500 Estimated Useful Life 10 years Residual Value $0 Blossom Inc. is currently testing this asset for impairment. While the licensing agreement could currently be sold for $39,800, Blossom Inc. plans to keep producing the bio-char two more years. It expects net cash flows from production to be $20,900 yearly and that it can sell the licensing agreement for $7,400 at the end of year two. The current interest rate is 5%

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