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At the end of 2023 , Pronghorn Corporation owns a licence with a remaining life of 10 years and a carrying amount of $527,000. Pronghorn
At the end of 2023 , Pronghorn Corporation owns a licence with a remaining life of 10 years and a carrying amount of $527,000. Pronghorn expects undiscounted future cash flows from this licence to total $532.000. The licence's fair value is $421,500 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $475,100. Pronghorn prepares financial statements in accordance with IFRS. (a) Determine if the licence is impaired 3 t the end of 2023. The licence at the end of 2023 . Prepare any related entry that is necessary. (Credit account titles ore automotically indented when the omount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount tities and enter O for the omounts. List debit entry before credit entry) Fred Moss, owner of Blue Spruce interiors inc, is negotiating for the purchase of Swifty Galleries Ltd. The condensed statement of frnancial position of Swifty follows in an abbreviated form: Elue Spruce and Swifty agree that the land is undervalued toy $40,500 and the business equipment is covervalued by $11,700.5 wifty agrees to sell the business to Biut Spruce far $383.000. Prepare the entry to record the purchase of the business's net assets on Blue Spruce's books. (Credit account titles are automatically Indentid when the omount is entered, Do rot indent manually. If no entry is requilred, select "No Entry" for the account titles and enter ofor the amounts tist ofl decit entries before credit entries
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