Fredrick Wilson Company, an IFRS reporter, determined that one of its finite- life intangible assets is impaired. The asset’s net carrying value on the date of the impairment is $ 905,000. Fredrick Wilson does not use a separate accumulated amortization account. To measure the impairment loss, the company projected the asset’s future cash flows as follows:
Future Period Cash Flow Projection
Year 1……………………… $ 400,000
Year 2 ……………………… 250,000
Year 3 ……………………… 140,000
Year 4 ……………………… 60,000
Total $ 850,000