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MEDLink System Inc. ( M E D L i n k ) i s a privately held company specializing i n customized medical software t

MEDLink System Inc. (MEDLink)is a privately held company specializing in customized medical software to manage patient records for the medical offices, medical laboratories and hospitals across Canada. MEDLink users are healthcare administrators and professionals (lab technicians, nurses and doctors) across Canada.
The company has been operating from its headquarters in the Lower
Mainland ofBC since Jan 1,2018. The companys fiscal year end is
December 31. For the first time since its inception, an external auditor had been appointed to conduct an audit prior to issuing the financial statements planned for April 15,2022.
Server Farm (servers and network assets)
When the servers and network assets were initially purchased in2018, the company had to arrange for long distance transportation from Toronto, costing $16,000. Insurance while in transit was $34,000. The company also had to pay technical engineers to install and setup the equipment, costing $35,000. Start-up and testing costs were another $15,000. Total expenditure $100,000 was fully expensed in2018.
For the year ended Dec 31,2021 Meg gathered the following information on the server farm assets. Despite evidence from internal reporting shows performance below expectations, no impairment was recognized.
(Picture is information)
Required:
Regarding server farm, provide correct calculations and journal entries for each transaction in compliance with IFRS. Include
your assumptions in the calculations/journal entries.
image text in transcribed

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