At the end of $2023,$ Swifty Corporation owns a licence with a remaining life of $10$ years and a carrying amount of $$521,000.$ SwiftyAt the end of $2023,$ Blue Spruce Corporation owns a licence with a carrying amount of $$505,000.$ Blue Spruce expects undiscounted

future cash flows from this licence to total $$509,100.$ The licence's fair value is $$400,100$ and disposal costs are estimated to be nil.

The licence's discounted cash flows $($that is$,$ value in use$)$ are estimated to be $$447,400.$ Assume that the licence was granted in

perpetuity and has an indefinite life, and that Blue Spruce prepares financial statements in accordance with ASPE. Assume that the

licence was granted in perpetuity and has an indefinite life.

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 $0$ for the amounts. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

eTextbook and Media

List of Accounts

Assume the recoverable amount is calculated to be $$420,200$ at the end of $2024.$ Determine if the licence is impaired at the end of

The licence

at the end of $2024.$

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.$)$

expects undiscounted future cash flows from this licence to total $$525,700.$ The licence's fair value is $$416,900$ and disposal costs are

estimated to be nil. The licence's discounted cash flows $($that is$,$ value in use$)$ are estimated to be $$461,200.$ Swifty prepares financial

statements in accordance with ASPE.

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 $0$ for the amounts. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

Loss on Impairment $-$ Licences

Accumulated Impairment Losses $-$ Licences

eTextbook and Media

List of Accounts

Your answer is partially correct.

Assume the recoverable amount under ASPE $($undiscounted future cash flows$)$ is calculated to be $$486,800$ 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 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 $0$ for the amounts. List debit entry before credit entry.$)$

Account Titles and Explanation

Credit