S Preview File Edit View Go Tools Window Help 2020 ACCT 200 (page 2 of 6) . Q4. Q5. Q Search Schmidt Corp. acquired 250,000 shares in Roscoe Co. on January 1, 2019, for $500,000. At that time, Roscoe had 1 million of its no par common shares outstanding and had net assets with a carrying value of $2 million. During 2019, Roscoe paid cash dividends of $220,000 and reported net income of $480,000. Schmidt is using the equity method to account for this investment. In January, 2020, Schmidt is offered $540,000 for its shares in Roscoe Co. and the shares are sold for this amount. Required: (a) Prepare Schmidt's required journal entries for this investment for 2019. (6 marks) (b) Prepare Schmidt's required journal entry for the disposal of this investment in January, 2020. (3 marks) Trinidad Inc. is a public corporation and follows IFRS. On Jan 2, 2018 they purchased a limited-life licence for $50,000. This licence has a ten year life, and is not renewable. Straight-line amortization is being used. As a result of deteriorating business conditions in late 2019, Trinidad performed an impairment review for the license and calculated the following values as at December 31, 2019: undiscounted net cash flows value in use $38,000 $35,000 fair value less selling costs $32,000. arch Required: (a) Calculate the amount of impairment (if any) for this asset (4 marks). (b) Prepare the adjusting entry, if required, to reflect the impairment (2 marks)