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At the end of 2023, Bridgeport Corporation owns a licence with a remaining life of...

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Accounting

At the end of 2023, Bridgeport Corporation owns a licence with a remaining life of 10 years and a carrying amount of $534,000.
Bridgeport expects undiscounted future cash flows from this licence to total $539,800. The licence's fair value is $429,100 and
disposal costs are estimated to be nil. The licence's discounted cash flows (that is, value in use) are estimated to be $481,000.
Bridgeport prepares financial statements in accordance with A.SPE.
(a)
Your answer is partially correct.
Determine if the licence is impaired at the end of 2023.
The licence
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
Loss on Impalrment - Llcences
Intanglble Assets-Llcences
image

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