Question
At the end of 2023, Martinez Corporation owns a licence with a remaining life of 10 years and a carrying amount of $547,000. Martinez expects
At the end of 2023, Martinez Corporation owns a licence with a remaining life of 10 years and a carrying amount of $547,000.
Martinez expects undiscounted future cash flows from this licence to total $551,400. The licence's fair value is $441,600 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $493,400. Martinez prepares financial statements in accordance with ASPE.
Your answer is incorrect.
Determine if the licence is impaired at the end of 2023.
The licence is not impaired # 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
eTextbook and Media
Debit
Credit
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