Ac. At the end of 2023, Blue Spruce Corporation owns a licence with a carrying amount of $505,000. Blue Spruce expectsundiscounted future cash flows from this licence to total $509,100. The licence's fair value is $400,100 and disposal costsare estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $447,400. Assumethat the licence was granted in perpetuity and has an indefinite life, and that Blue Spruce prepares financial statements inaccordance with ASPE. Assume that the licence was granted in perpetuity and has an indefinite life.Determine if the licence is impaired at the end of 2023.The licence select an optionis impairedis not impaired at the end of 2023.Prepare any related entry that is necessary. (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. Listdebit entry before credit entry.)Account Titles and Explanationenter an accenter an account titleDebitenter a debit amountenter an account titleenter a debit amountThe licence select an optionis impairedis not impaired at the end of 2024.enter an account titleAssume the recoverable amount is calculated to be $420,200 at the end of 2024. Determine if the licence is impaired atthe end of 2024.CreditPrepare any related entry that is necessary. (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. Listdebit entry before credit entry.)Account Titles and Explanation Debitenter a debit amountenter a credit amountenter a debit amountenter a credit amountCreditenter a credit amountenter a credit amount

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At the end of 2023, Blue Spruce Corporation owns a licence with a carrying amount of $505,000. Blue Spruce expects undiscounted future cash flows from this licence to total $509,100. The licence's fair value is $400,100 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $447,400. Assume that the licence was granted in perpetuity and has an indefinite life, and that Blue Spruce prepares financial statements in accordance with ASPE. Assume that the licence was granted in perpetuity and has an indefinite life. Determine if the licence is impaired at the end of 2023. The licence select an option is impaired is not impaired at the end of 2023.

At the end of 2023, Blue Spruce Corporation owns a licence with a carrying amount of $505,000. Blue Spruce expects undiscounted future cash flows from this licence to total $509,100. The licence's fair value is $400,100 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $447,400. Assume that the licence was granted in perpetuity and has an indefinite life, and that Blue Spruce prepares financial statements in accordance with ASPE. Assume that the licence was granted in perpetuity and has an indefinite life. Determine if the licence is impaired at the end of 2023. The licence select an option is impaired is not impaired at the end of 2023.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At the end of 2023, Culver Corporation owns a licence with a remaining life of 10 years and a carrying amount of $544,000. Culver expects undiscounted future cash flows from this licence to total $548,500. The licence's fair value is $439,100 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $489,700. Culver prepares financial statements in accordance with ASPE. (a) Your answer is partially correct. Determine if the licence is impaired at the end of 2023. The licence is not impaired at the end of 2023. Prepare any related entry that is necessary. (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 O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
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