Denger At the end of 2023, Pina Colada Corporation owns a licence with a carrying amount of $546,000. Pina Colada expects undiscountedfuture cash flows from this licence to total $550,500. The licence's fair value is $441,300 and disposal costs are estimated to be nil.The licence's discounted cash flows (that is, value in use) are estimated to be $489,300. Assume that the licence was granted inperpetuity and has an indefinite life, and that Pina Colada prepares financial statements in accordance with ASPE. Assume that thelicence was granted in perpetuity and has an indefinite life.Your answer is incorrect.Determine if the licence is impaired at the end of 2023.The licence is impairedV 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 indentmanually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.)

Impairment loss are recognized when the assets carrying value is higher than the recoverable…

Your answer is incorrect. Determine if the licence is impaired at the end of 2023. The licence is impaired at the end of 2023. Prepare any related entry that is necessary. (Credit account titles are automatically indented manually. If no entry is required, select "No Entry" for the account titles and enter O for the amou