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Sarasota Corp. has a patent with a cost of $433,000 and accumulated amortization of $349,000, which was not used as frequently during the current year.
Sarasota Corp. has a patent with a cost of $433,000 and accumulated amortization of $349,000, which was not used as frequently during the current year. Management has determined that undiscounted future cash flows are $82,000 while the discounted cash flows are $73,800. The fair value of the patent is $87,100 and would cost management $4,200 to sell it. Sarasota Corp. has asked you, to prepare any impairment loss journal entries required under (1) IFRS and (2) ASPE. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) ) (2)
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