Ayayai Corp. has a patent with a cost of $427,000 and accumulated amortization of $335,000, which was not used much during the current year. Management has determined that undiscounted future cash flows are $90,200 while the discounted cash flows are $81,180. The fair value of the equipment is $95,100 and would cost management $4,100 to sell it. Ayayai Corp. has asked you, to prepare any impairment loss journal entries required under (1) IFRS and (2) ASPE. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Account Titles and Explanation (1) (2) Debit Credit
Ayayai Corp. has a patent with a cost of $427,000 and accumulated amortization of $335,000, which was not used much during the current year. Management has determined that undiscounted future cash flows are $90,200 while the discounted cash flows are $81,180. The fair value of the equipment is $95,100 and would cost management $4,100 to sell it. Ayayai Corp. has asked you, to prepare any impairment loss journal entries required under (1) IFRS and (2) ASPE. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Account Titles and Explanation (1) (2) Debit Credit
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Ayayai Corp. has a patent with a cost of $427,000 and accumulated amortization of $335,000, which was not used much during the current
year. Management has determined that undiscounted future cash flows are $90,200 while the discounted cash flows are $81,180. The fair value of the
equipment is $95,100 and would cost management $4,100 to sell it.
Ayayai Corp. has asked you, to prepare any impairment loss journal entries required under (1) IFRS and (2) ASPE. (If no entry is required, select "No Entry"
for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit
entries before credit entries.)
No. Account Titles and Explanation
(1)
N
Debit
Credit
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