Question 23 (12 points) DEF Corp. owns an intangible asset. DEF does not use the revaluation model to account for its intangible assets. DEF Corp. has a December 31 fiscal year-end. The information in this paragraph applies to the intangible asset on December 31, 2020. The intangible asset has a carrying value of $150,000. The undiscounted future cash flows of this intangible asset are $125,000. The discounted future cash flows (value in use) of this intangible asset are $100,000. The fair value of this intangible asset is $75,000. The costs to sell this asset total $25,000. Indicators exist that the intangible asset may be impaired. On December 31, 2021, new information became available about the intangible asset. The undiscounted future cash flows of this intangible asset are now $325,000. The discounted future cash flows (value in use) of this intangible asset are now $300,000. The fair value of this intangible asset is now $275,000. The costs to sell this asset remain the same at a total of $25,000. Each of the four scenarios below is an independent case. In each scenario, if an impairment loss is recorded in 2020, assume that on December 31, 2021, indicators exist that the impairment loss recognized in 2020 may no longer exist and the asset may have recovered in value. i. ASPE is applied. The intangible asset is a finite-life intangible asset. At the beginning of 2021, the asset has a five-year useful life remaining, and zero residual value. The asset is depreciated using the straight-line method. i. IFRS is applied. The intangible asset is a finite-life intangible asset. At the beginning of 2021, the asset has a five-year useful life remaining, and zero residual value. The asset is depreciated using the straight-line method. iii. ASPE is applied. The intangible asset is an indefinite-life intangible asset. iv. IFRS is applied. The intangible asset is an indefinite-life intangible asset. For each of the four independent scenarios, and with respect to DEF Corp's intangible asset, find (a) the amount of impairment loss for the year ended Dec. 31, 2020, (b) the amount of depreciation expense for the year ended Dec. 31, 2021, and (c) the amount of reversal of impairment loss for the year ended Dec. 31, 2021. (Note: Be sure you provide the three required amounts for all four independent scenarios, i.e., 12 amounts total). (Note: For the amount of impairment loss for the year ended Dec. 31, 2020, use only information available in 2020!) Note: Be sure you provide the three required amounts for all four independent scenarios, i.e., 12 amounts total). (Note: For the amount of impairment loss for the year ended Dec. 31, 2020, use onl information available in 2020!) (Note: If there is no impairment, or no impairment reversal, just state 0 as your response!) Question 23 (12 points) DEF Corp. owns an intangible asset. DEF does not use the revaluation model to account for its intangible assets. DEF Corp. has a December 31 fiscal year-end. The information in this paragraph applies to the intangible asset on December 31, 2020. The intangible asset has a carrying value of $150,000. The undiscounted future cash flows of this intangible asset are $125,000. The discounted future cash flows (value in use) of this intangible asset are $100,000. The fair value of this intangible asset is $75,000. The costs to sell this asset total $25,000. Indicators exist that the intangible asset may be impaired. On December 31, 2021, new information became available about the intangible asset. The undiscounted future cash flows of this intangible asset are now $325,000. The discounted future cash flows (value in use) of this intangible asset are now $300,000. The fair value of this intangible asset is now $275,000. The costs to sell this asset remain the same at a total of $25,000. Each of the four scenarios below is an independent case. In each scenario, if an impairment loss is recorded in 2020, assume that on December 31, 2021, indicators exist that the impairment loss recognized in 2020 may no longer exist and the asset may have recovered in value. i. ASPE is applied. The intangible asset is a finite-life intangible asset. At the beginning of 2021, the asset has a five-year useful life remaining, and zero residual value. The asset is depreciated using the straight-line method. i. IFRS is applied. The intangible asset is a finite-life intangible asset. At the beginning of 2021, the asset has a five-year useful life remaining, and zero residual value. The asset is depreciated using the straight-line method. iii. ASPE is applied. The intangible asset is an indefinite-life intangible asset. iv. IFRS is applied. The intangible asset is an indefinite-life intangible asset. For each of the four independent scenarios, and with respect to DEF Corp's intangible asset, find (a) the amount of impairment loss for the year ended Dec. 31, 2020, (b) the amount of depreciation expense for the year ended Dec. 31, 2021, and (c) the amount of reversal of impairment loss for the year ended Dec. 31, 2021. (Note: Be sure you provide the three required amounts for all four independent scenarios, i.e., 12 amounts total). (Note: For the amount of impairment loss for the year ended Dec. 31, 2020, use only information available in 2020!) Note: Be sure you provide the three required amounts for all four independent scenarios, i.e., 12 amounts total). (Note: For the amount of impairment loss for the year ended Dec. 31, 2020, use onl information available in 2020!) (Note: If there is no impairment, or no impairment reversal, just state 0 as your response!)