Question
The following information is for a copyright owned by Pina Colada Corp., a publicly accountable entity, at December 31, 2020. Pina Colada Corp. applies IFRS.
The following information is for a copyright owned by Pina Colada Corp., a publicly accountable entity, at December 31, 2020. Pina Colada Corp. applies IFRS.
Cost$4,310,000
Carrying amount2,166,000
Expected future net cash flows (undiscounted)2,037,000
Fair value1,553,000
Assume that Pina Colada 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 $1,898,000 and its selling costs are $125,000.
(a)
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
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