At the end of $2023,$ Bridgeport Corporation owns a licence with a remaining life of $10$ years and a carrying amount of $$534,000.$

Bridgeport expects undiscounted future cash flows from this licence to total $$539,800.$ The licence's fair value is $$429,100$ and

disposal costs are estimated to be nil. The licence's discounted cash flows $($that is$,$ value in use$)$ are estimated to be $$481,000.$

Bridgeport prepares financial statements in accordance with A$.$SPE.

$($a$)$

Your answer is partially correct.

Determine if the licence is impaired at the end of $2023.$

The licence

at the end of $2023.$

Prepare any related entry that is necessary. $($Credit account titles are automatically indented when the amount is entered. Do not indent

manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

Loss on Impalrment $-$ Llcences

Intanglble Assets$-$Llcences