Case One:

On December 31, 2020, book value of patent is 6 millions. Undiscounted sum of future cash flows of patent is 10 millions, fair value of patent is 3 millions.

Determine the amount of any impairment loss to be recorded, if any.

(Please explain in detailes why book value is compared with the Undiscounted sum of future cash flows.)

Case Two:

Apple company acquired Banana Corporation for 60 millions on January 1st, 2020. In addition, he fair value of Goodwill is 10 millions.

An indicator is present signaling possible impairment in the end of 2020.

On December 31, 2020,

Fair value of Banana Corporation: 45million

Fair value of Banana Corporation (excluding goodwill): 39 million

Book value of Banana Corporation (including goodwill): 47 million

Determine the amount of any impairment loss to be recorded, if any.