On August 1, 2019, Spring Inc. (Spring) completed the acquisition of Season Inc. (Season) to create a modern media company built around premium content and high-speed networks. The purchase price was $12 million and Season has been identified as a reporting, cash-generating unit. The Season division outperformed its industry cohort in 2019. However, due to recent challenges in the market, at December 31, 2020, there is concern that the division's expected future earnings and cash flows were significantly decreased. Based on the management's review, the following information was obtained: As at December 31, 2020 Season Division Carrying Value 11,000,000 Fair Value 10,500,000 Undiscounted Future Cash Flows 12,000,000 Discounted Future Cash Flows 10,000,000 Cost to sell 100,000 Further, the following information is available with respect to the carrying amount of Season division's net assets. As at December 31, 2020 Carrying Amonut Franchise (5 year remaining life) 4,000,000 Copyright (15 year remaining life) 3,000,000 Trademark (Indefinite-life) 3,700,000 Goodwill 300,000 Total net assets $11,000,000 Requirements 1) If Spring follows ASPE, determine if goodwill is impaired. If so, calculate the total impairment loss. If not, provide reasons. (2 marks) 2) Assuming Spring follows IFRS, a. Carry out the impairment test and determine the total impairment loss, if any. (5 marks) b. Determine the allocation of the impairment loss, if any. (3 marks) C. Prepare the related journal entries