Exercise 12-13 (Essay) At the end of 2020, Dayton Corporation owns a licence with a remaining life of 10 years and a carrying amount of $530,000. Dayton expects undiscounted future cash flows from this licence to total $535,000. The licence's fair value is $425,000 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $475,000. Dayton prepares financial statements in accordance with IFRS. The recoverable amount at the end of 2021 was $450,000. (c) Explain if there would be impairment at the end of 2021 if the licence's fair value were $500,000 instead of $450,000 at the end of 2021