70.2K

Verified Solution

Link Copied!

Question $1$ of $4$

$\frac{2\mathrm{.}4}{4}$

At the end of $2023,$ Bridgeport Corporation owns a licence with a remaining life of $10$ years and a carrying amount of $$528,000.$ Bridgeport expects undiscounted future cash flows from this licence to total $$532,500.$ The licence's fair value is $$423,000$ and disposal costs are estimated to be nil. The licence's discounted cash flows $($that is$,$ value in use$)$ are estimated to be $$477,700.$ Bridgeport prepares financial statements in accordance with IFRS.

Your answer is 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 Impairment

Accumulated Impairment Losses$-$LicencesQuestion $1$ of $4$

$\frac{2\mathrm{.}4}{4}$

Your answer is partially correct.

Assume the recoverable amount is calculated to be $$450,700$ at the end of $2024.$ Determine if the licence is impaired at the end of $2024.$

The licence $$ at the end of $2024.$

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

Accumulated Impairment Losses $-$ Licences

Recovery of Loss from Impairment $$

eTextbook and Media

Assistance Used

eTextbook $1$

eTextbook $2$

Answer & Explanation Solved by verified expert

See Answer