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t the end of 2017, Swifty Corporation owns a licence with a remaining life of 9 years and a carrying amount of $514,000. Swifty expects

t the end of 2017, Swifty Corporation owns a licence with a remaining life of 9 years and a carrying amount of $514,000. Swifty expects undiscounted future cash flows from this licence to total $518,600. The licences fair value is $408,700 and disposal costs are estimated to be nil. The licences discounted cash flows (that is, value in use) are estimated to be $456,700. Swifty prepares financial statements in accordance with IFRS.

A)prepare the journal entry for imapired license .

b)Assume the recoverable amount is calculated to be $434,000 at the end of 2018. Determine if the licence is impaired at the end of 2018.

Prepare any related entry for not impaired licenses. (Round answer to 0 decimal places, e.g. 5,275. 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.)

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