question 1

Question 1 (5 points) Greenwater Inc. is a company that follows IFRS and has a year end of July 31. Greenwater Inc. owns a trademark that it purchased 4 years ago for $136,400. The accumulated amortization on this trademark to July 31, 2020 is $27.300. Other information available about the trademark on July 31, 2020 is as follows: Expected undiscounted future cash flows from the trademark for the remainder of its useful life total $108,250. . The trademark has a value in use of $97,600. The fair value of the trademark is $105,950. Selling costs of $2,000 would be incurred if the trademark was sold. Required: Determine if the trademark is impaired pt July 31, 2020 and prepare a journal entry to record the impairment, if required