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At the end of 2023, Concord Corporation owns a licence with a remaining life of 10 years and a carrying amount of $501,000. Concord expects undiscounted future cash flows from this licence to total $506,500. The licence's fair value is $396,400 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $442,500. Concord prepares financial statements in accordance with ASPE. (a) Your answer is incorrect. 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 Accumulated Impairment Losses - Licences Debit Credit

At the end of 2023, Concord Corporation owns a licence with a remaining life of 10 years and a carrying amount of $501,000. Concord expects undiscounted future cash flows from this licence to total $506,500. The licence's fair value is $396,400 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $442,500. Concord prepares financial statements in accordance with ASPE. (a) Your answer is incorrect. 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 Accumulated Impairment Losses - Licences Debit Credit

FINANCIAL ACCOUNTING
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, Concord Corporation owns a licence with a remaining life of 10 years and a carrying amount of $501,000. Concord expects undiscounted future cash flows from this licence to total $506,500. The licence's fair value is $396,400 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $442,500. Concord prepares financial statements in accordance with ASPE. (a) Your answer is incorrect. 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 Accumulated Impairment Losses - Licences Debit Credit
Transcribed Image Text:At the end of 2023, Concord Corporation owns a licence with a remaining life of 10 years and a carrying amount of $501,000. Concord expects undiscounted future cash flows from this licence to total $506,500. The licence's fair value is $396,400 and disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $442,500. Concord prepares financial statements in accordance with ASPE. (a) Your answer is incorrect. 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 Accumulated Impairment Losses - Licences Debit Credit
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