At the end of $2023,$ Novak Corporation owns a licence with a remaining life of $10$ years and a carrying amount of $$549,000.$ Novak expects undiscounted future cash flows from this licence to total $$554,800.$ The licence's fair value is $$443,700$ and disposal costs are estimated to be nil. The licence's discounted cash flows $($that is$,$ value in use$)$ are estimated to be $$493,900.$ Novak prepares financial statements in accordance with ASPE.

Assume the recoverable amount under ASPE $($undiscounted future cash flows$)$ is calculated to be $$521,500$ at the end of $2024.$ Determine if the licence is impaired at the end of $2024.$

The licence $$ at the end of $2024.$

Prepare any related entry that is necessary. $($Credit accountt tilles are cutomatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account tifles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Account Titles and Explanation

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Credit