Girdwood Inc. has a trademark that it expects to have an indefinite life. The carrying value of

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Girdwood Inc. has a trademark that it expects to have an indefinite life. The carrying value of the trademark is $750,000. As of December 31, 2022, the fair value of the trademark was $600,000. The present value of the future cash flows is $630,000 and the undiscounted summation of the future cash flows is $1,000,000. The costs to sell the trademark would be insignificant.

Required: What journal entries would Girdwood prepare to record an impairment of the trademark using both US GAAP and IFRS.

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Accounting Principles Part 2

ISBN: 978-1118306796

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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Posted Date: Apr 01, 2024 08:31 PM

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Girdwood Inc. has a trademark that it expects to have an indefinite life. The carrying value of

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Under US GAAP and IFRS impairment of intangible assets like trademarks is recognized when the carryi... View the full answer

Accounting Principles Part 2

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