$417$ WP#$8$ chapter $12-2$

Question $3$ of $4$

$\frac{1\mathrm{.}6}{2}$

At the end of $2023,$ Bramble Corporation owns a licence with a carrying amount of $$525,000.$ Bramble expects undiscounted future cash flows from this licence to total $$530,900.$ The licence's fair value is $$419,800$ and disposal costs are estimated to be nil. The licence's discounted cash flows $($that is$,$ value in use$)$ are estimated to be $$470,100.$ Assume that the licence was granted in perpetuity and has an indefinite life, and that Bramble prepares financial statements in accordance with ASPE. Assume that the licence was granted in perpetuity and has an indefinite life.

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 Impairment $$

Accumulated Impairment Losses $-$ Licences

$$

$$

$54900$