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The Sparkle Ltd. Company has a trademark that it expects to have an indefinite life with...

The Sparkle Ltd. Company has a trademark that it expects to have an indefinite life with a carrying value of $1,500,000. As part of its 2018 annual impairment testing, Sparkle decides not to use the qualitative assessment option under U.S. GAAP and moves forward to performing its quantitative assessment impairment testing for both U.S. GAAP and IFRS. In this process, it is determined that the fair value of the trademark is $1,200,000. The present value of the future cash flows is $1,260,000 and the undiscounted summation of the future cash flows is $1,400,000. The costs to sell the trademark would be insignificant.

b. In the following year, Sparkle Ltd. reviewed its trademark for impairment reversal indicators. Upon review of these indicators, the management determined that reversal of the impairment was appropriate. The fair value of the trademark and the present value of future cash flows is both $1,600,000. The costs to sell the trademark continue to be insignificant. Determine whether there is any reversal of the impairment loss for the trademark under U.S. GAAP and IFRS

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