Question
The following information is for a copyright owned by Bramble Corp., a publicly accountable entity, at December 31, 2020. Bramble Corp. applies IFRS. Cost$4,327,000 Carrying
The following information is for a copyright owned by Bramble Corp., a publicly accountable entity, at December 31, 2020. Bramble Corp. applies IFRS.
Cost$4,327,000
Carrying amount2,167,000
Expected future net cash flows (undiscounted)2,018,000
Fair value1,540,000
Assume that Bramble Corp. will continue to use this copyright in the future. As at December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. The copyright's value in use is $1,840,000 and its selling costs are $131,000.
Prepare the journal entry, if any, to record the asset's impairment at December 31, 2020. (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.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2020
the journal entry to record amortization expense for 2021 related to the copyright. (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.)
Account Titles and Explanation
Debit
Credit
The copyright's fair value at December 31, 2021, is $2.4 million. Prepare the journal entry, if any, to record the increase in fair value. (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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