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At the end of 2020,Blue SpruceCorporation owns a licence with a remaining life of10years and a carrying amount of $525,000.Blue Spruceexpects undiscounted future cash flows

At the end of 2020,Blue SpruceCorporation owns a licence with a remaining life of10years and a carrying amount of $525,000.Blue Spruceexpects undiscounted future cash flows from this licence to total $531,000. The licence's fair value is $419,700and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $470,900.Blue Spruceprepares financial statements in accordance with IFRS.

Determine if the licence is impaired at the end of 2020.

The licence

is impaired

is not impaired

at the end of 2020.

What are the related entries 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

Assume the recoverable amount is calculated to be $442,300at the end of 2021. Determine if the licence is impaired at the end of 2021.

The licence

is not impaired

is impaired

at the end of 2021.

What are the related journal entries 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

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