At the end of 2020, Ayayai Corporation owns a licence with a remaining life of 10 years and a carrying amount of $ 500,000. Ayayaiexpects undiscounted future cash flows from this licence to total $ 504,000. The licences fair value is $ 396,000 and disposal costs are estimated to be nil. The licences discounted cash flows (that is, value in use) are estimated to be $ 450,000. Ayayai prepares financial statements in accordance with IFRS.

(a) Determine if the licence is impaired at the end of 2020.

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.)

Account Titles and Explanation	Debit	Credit