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

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

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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