Business, 24.11.2021 19:50 soloriorafa

At the beginning of Year 1, Sports Gear Inc. (SGI) acquired a college apparel license at a cost of $28,000,000, excluding legal fees of $1,600,000 and registration fees of $400,000. The company estimated that the license would have a useful (legal) life of 15 years. For Question 3, assume that the fair value of the license at the end of Year 1, Year 2, and Year 3 is $26,600,000, $26,300,000, and $23,850,000, respectively. 1. What amount will the company report as the carrying value of the license asset at the end of Year 2 under US GAAP?
2. If the company determines that the license asset is impaired by $3,00,000 at the beginning of Year 3, what is the total amount of expense related to the license reported on the income statement for Year 3 under US GAAP?
3. Determine the amount of revaluation gain or loss that is reported on the income statement for Year 2 under IFRS if the revaluation model is used.

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At the beginning of Year 1, Sports Gear Inc. (SGI) acquired a college apparel license at a cost of $...

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