The following information is for a copyright owned by Lighting Designs Corp., a publicly accountable entity, at December
31, 2023. Lighting Designs applies IFRS.
Cost
$4,300,000
Carrying amount
2,150,000
Expected future net cash flows (undiscounted)
2,000,000
Fair value
1,600,000
Assume that Lighting Designs will continue to use this copyright in the future. As at December 31, 2023, the copyright is
estimated to have a remaining useful life of 10 years. The copyright's value in use is $1,850,000 and its selling costs are
$100,000.
(a)
(b)
(c)
* Your answer is incorrect.
The copyright's fair value at December 31, 2024, is $2.2 million. Prepare the journal entry, if any, to record the
increase in fair value. (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 0 for the amounts. List debit entry before
credit entry.)