Lanca Corp, based in the US, prepares US GAAP consolidated financial statements. The company has asked you to determine the adjustments needed to convert the 2015 US GAAP financial statements to a set of IFRS financial statements. For each item below indicate the adjusting entry needed; if no entry is needed enter "none” as your answer.
In 2012, Lancaacquired a trademark for $40,000 in 2012. The trademark is classified as an intangible asset with an indefinite life. At year end 2015, the trademark is determined to have a selling price of $35,000 with zero cost to sell, fair value of $41,000, expected future cash flows from continued use of the trademark of $42,000, and the present value of the expected future cash flows of $34,000.