Sunland Company owns a trade name that was purchased in an acquisition of Blossom Company. The trade name has a book value of $3,800,000, but according to IFRS, it is assessed for impairment on an annual basis. To perform this impairment test, Sunland must estimate the fair value of the trade name (using IFRS 13). It has developed the following cash flow estimates related to the trade name based on internal information. Eachgash flow estimate reflects Sunland's estimate of annual cash flows over the next 10 years. The trade name is assumed to have no salvage value after the 10 years. (Assume the cash flows occur at the end of each year) Cash Flow Estimate Probability Assessment $383,000 631,000 747,000 Click here to vie 20 % 50 % 30 % factor table PRESENT VALUE OF 1 PRESENT VALUE OF AN ANNUITY OF 1

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