The following information is for a copyright owned by Flounder Corp., a publicly accountable entity, at December 31, 2023. Fl applies IFRS. Cost Carrying amount Expected future net cash flows (undiscounted) Fair value $4,339,000 2,167,000 2,021,000 1,519,000
The following information is for a copyright owned by Flounder Corp., a publicly accountable entity, at December 31, 2023. Fl applies IFRS. Cost Carrying amount Expected future net cash flows (undiscounted) Fair value $4,339,000 2,167,000 2,021,000 1,519,000
The following information is for a copyright owned by Flounder Corp., a publicly accountable entity, at December 31, 2023. Fl applies IFRS. Cost Carrying amount Expected future net cash flows (undiscounted) Fair value $4,339,000 2,167,000 2,021,000 1,519,000
B. Prepare the journal entry to record amortization expense for 2024 related to the copyright. (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.)
Transcribed Image Text:The following information is for a copyright owned by Flounder Corp., a publicly accountable entity, at December 31, 2023. Flounder
applies IFRS.
Cost
Carrying amount
Expected future net cash flows (undiscounted)
Fair value
(a)
$4,339,000
2,167,000
2,021,000
Assume that Flounder will continue to use this copyright in the future. As at December 31, 2023, the copyright is estimated to have a
remaining useful life of 8 years. The copyright's value in use is $1,877,000 and its selling costs are $104,000.
1,519,000
Date Account Titles and Explanation
Dec.
31,
2023
Prepare the journal entry, if any, to record the asset's impairment at December 31, 2023. (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.)
Debit
Credit
Transcribed Image Text:Account Titles and Explanation
Debit
Credit
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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