Sage Hill Ltd$.,$ follows IFRS and was organized in $2022.$ Sage Hill provided you with the following information.

Purchased a licence for $$19,200$ on July $1,2022.$ The licence gives Sage Hill exclusive rights to sell its services in the province

and will expire on July $1,2030.$

Purchased a patent on January $2,2023,$ for $$36,600.$ It is estimated to have a $5-$year life.

On April $1,2023,$ Sage Hill purchased a small circuit board manufacturer for $$316,000.$ Goodwill recorded in the transaction

was $$84,000.$

On July $1,2023,$ legal fees for the successful defense of the patent purchased on January $2,2023,$ were $$12,420.$

Research and development costs incurred as of December $31,2023,$ were $$75,000.$

Prepare the journal entries and any year end adjusting entry $($ies$)$ related to the patent during $2023.($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles

and enter $0$ for the amounts. List all debit entries before credit entries. Round answers to $0$ decimal places, e$.$g$.5,125.)$

At December $31,2023,$ an impairment test is performed on the licence purchased in $2022.$ It is estimated that the discounted cash

flows to be received from the licence will be $$12,000,$ and its fair value is $$10,900$ with disposal costs estimated to be nil.

Calculate the amount of impairment, if any, to be recorded December $31,2023.$

Amount of impairment $

eTextbook and Media

What is the amount to be reported for intangible assets on the SFP at December $31,2022.$

Intangible assets $

eTextbook and Media

What is the amount to be reported for intangible assets on the SFP at December $31,2023.($Round answers to $0$ decimal places, e$.$g$.$

$5,125.)$

process. The process met the six criteria for capitalization as an intangible asset. Below is a listing of the events relating to the patent

over the five fiscal years from $2023$ through $2027$:

$2023$:

$,$ on January $1,$ acquired the patent for the production process for a cash payment of $$13,350,000,$ and determined that the

process had an indefinite useful life.

$,$ on December $31,$ tested the patent for impairment and determined that its fair value was $$14,350,000.$

$2024$:

$,$ on December $31,$ tested the patent for impairment and determined that its fair value was $$11,750,000.$

$2025$:

$,$ on December $31,$ tested the patent for impairment and determined that its fair value was $$12,250,000.$

$2026$:

$,$ on January $1,$ determined that the useful life of the patent was no longer indefinite, its carrying amount was recoverable, its

estimated remaining useful life was $5$ years, its estimated residual value was $$0$ and the pattern of economic benefits to be

obtained from the patent during those $5$ years was evenly spread over those $5$ years.

$,$ on December $31,$ tested the process for impairment and recoverability and determined that its fair value was $$1,000,000$ and

its carrying amount was recoverable.

$2027$:

$,$ on December $31,$ tested the patent for impairment and recoverability and determined that its fair value was $$0$ and its

carrying amount was not recoverable.

Prepare all journal entries related to the patent for the production process Sandhill will record from January $1,2023$ to December $31,$

$2027,$ using the cost recovery impairment model. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.

Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

$($To record amortization expense$)$