W Co. acquired the intangible assets listed below for a total lump sum price of P400,000. Intangible asset Service mark Fair value P160,000 120,000 80,000 120,000 How much is the initial measurement of the masthead? Order and production backlogs In-house research and development Masthead Your answer
Q: The Oscar Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…
A: Total cost to be assigned = P20,000,000 + P240,000 Total cost to be assigned = P20,240,000
Q: Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of…
A: Asset Fair Market value % of total x lump-sum paid Amount allocated Land 85000…
Q: Robertson traded in an old plant asset for a newer model that would be more productive and…
A: What is meant by the Original Cost of the Machine? It is the cost that is borne by the company to…
Q: Coal Mining acquires a property at a cost of P10,000,000. Intangible development costs amounted to…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: Pina Colada Corp., organized in 2022, has the following transactions related to intangible assets.…
A: Intangible assets, as the name suggest are assets which cannot be seen, felt or touched. Basically…
Q: ABC Company purchased an asset which has the following information: 1. List price of $60000…
A: The original cost of the asset includes costs which are responsible for putting it in a working…
Q: Acquisition Cost of Long-Lived Asset The following data relate to a firm's purchase of a machine…
A: Particulars Amount Invoice price $25,000 Applicable sales tax $1,700 Cash discount taken for…
Q: Prepare journal entries to record the 2011 amortization expense. Prepare journal entries to record…
A: Intangible assets: Assets that do not have any physical existence but they can be measured in…
Q: Company A applies IFRS. The following information pertains to Company A's intangible assets: On…
A: 1. Impairment of goodwill has 2 steps. If the fair value of the unit exceeds the carrying cost good…
Q: Sponge Co. incurred research and development costs in 20x1 as follows: Equipment acquired for use…
A: Research and Development costs: The costs of deliberately obtaining new information and transforming…
Q: Keisha Co. incurred the following expenditures on internally developed intangible assets Internally…
A: Intangible assets are those assets that are identifiable, having economic value but do not have a…
Q: The Oscar Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…
A: Total cost to be assigned = P20,000,000 + P240,000 Total cost to be assigned = P20,240,000
Q: Uy Company acquired a tract of land on which was located an office building, a warehouse, and…
A: A lump-sum payment is a total amount that is paid by the buyer to the seller for the acquired…
Q: Greer Manufacturing purchases property that includes land, buildings and equipment for $5.3 million.…
A: Solution:- 1)Determination the total acquisition cost of this "basket purchase" as follows:-
Q: DLW Corporation acquired and placed in service the following assets during the year: Cost Basis $…
A: Cost recovery is an accounting method in which a business only records revenue from a transaction…
Q: Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of…
A: Asset Fair Market value % of total x lump-sum paid Amount allocated Land 85000…
Q: ABC Co. is acquiring XYZ Inc. XYZ has the following unrecorded intangible assets: Patent on a…
A: Following is the answer to the given question
Q: Qasio Private Limited (Pvt) developed a new intangible product. In developing this intangible asset,…
A: Date Particulars Dr (R) Cr (R) 2020 Jul-20 Intangible Assets 50000 Cash 50000…
Q: Company A applies IFRS. The following information pertains to Company A's intangible assets: On…
A: Impairment of goodwill has 2 steps. If the fair value of the unit exceeds the carrying cost good…
Q: Swifty Company, organized in 2020, has the following transactions related to intangible assets.…
A: A balance sheet of a firm may report two types of non-current assets; 1) tangible assets and 2)…
Q: g. An entity acquired a property for RM25 million in x2. The asset is depreciated at 2% on cost. The…
A: The acronym IFRS stands for International Financial Reporting Standards that provide the rules,…
Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…
A:
Q: The intangible assets section of Sheffield Company at December 31, 2022, is presented here. Patents…
A: Amortization - The cost of an intangible asset is written down over its usable or legal life,…
Q: Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price,…
A: The Equipment is purchased by companies for developing a particular product, and the company…
Q: Atlas Company acquired PPE on January 1, 2022 consisting of: Cost…
A: Depreciation- Depreciation is a technique for spreading out the expense of a tangible asset over the…
Q: Grey Company acquired a machine with a cash price of P2,000,000. Down payment Note payable in 3…
A: Machinery is a fixed asset for a company which is required for the production of final goods. The…
Q: Which of the following CANNOT be recognised as an intangible non-current asset in GHK's statement of…
A: Intangible assets are considered as non-current assets because they provide value to the company…
Q: During 2021, ABC Co. purchased intangible assets and debited them all to "Intangible assets".…
A: (a)
Q: ABC Co. acquired land, buildings, and equipment from XYZ Co. at a lump-sum price of P1,800,000. ABC…
A: If the amount paid for purchasing more than one asset then the cost of the asset is determined by…
Q: ABC Co. is acquiring XYZ Inc. XYZ has the following unrecorded intangible assets: Patent on a…
A: Intangible assets:- Intangible assets are defined as those assets which don’t have any physical…
Q: cost of land
A: Definition: Fixed asset: Long term tangible assets used in the organization's operations for…
Q: Initial Recognition Extra Corporation is installing a new plant at its production facility. It has…
A: All the costs incurred in order to make the new plant in a ready form becomes part of the plant and…
Q: ABC Co. acquired a new machine. Details of the acquisition are as follows: Cash paid for machine…
A: All costs directly related to the asset and the cost incurred to bring the asset to use will be…
Q: 6. Interest charges of $2000 Requirement: required: A. Which of the above payments must be…
A: The cost of the asset includes all those cost which makes the asset relevant for it's intended use.…
Q: Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and…
A: In a situation where commercial substance exists, any gain or loss on exchange of assets shall be…
Q: Man nent oup purchase estimate of the value of the land was HK$1,000,000 and of the building…
A: As per provisions of IFRS, initial recognition of Property, plant and equipment in case of purchase…
Q: Platteville Corporation has the following account balances at 12/31/20: Amortization expense P…
A: As per IAS 38 , if below mentioned twin conditions are satisfied , intangible asset will be…
Q: Marigold Corp., organized in 2022, has the following transactions related to intangible assets.…
A: Journal entry is a process of recording business transactions in the books of accounts for the first…
Q: Shanette Company incurred research and development costs in the current year as follows: Equipment…
A: Research and development expense which is also written as R&D expense are those direct expenses…
Q: Proton Corporation incurred the following costs in 2022: Acquisition of R&D equipment with a useful…
A: The advertising costs and engineering costs are not included in the research and development costs.
Q: Determine the initial valuation of each of the assets Teradene acquired in the above transactions.…
A:
Q: Acquisition Cost of a Fixed Asset The following data relate to a firm's purchase of a machine used…
A: The answer is as fallows
Q: Journalize the entry to record Heartland Telecom's purchase of SamsonSamson Wireless for $400,000…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: E10-7 Lump-Sum Purchase Garrett Corporation paid $200,000 to acquire land, buildings, and equipment.…
A: Total cost allocated for land , buildings and equipment : = $ 200000 + $ 20000 = $ 220000 Appraisal…
Q: Goodman Company exchanges an asset with The Pryce Corporation. Details of the exchange are as…
A: Journal entry is the primary entry that records the financial transactions initially.
Q: Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and…
A: Fixed assets: These are the assets which were used in the business for more than one year. These…
Q: A company’s old machine that cost $60,000 and had accumulated depreciation of $24,000 was traded in…
A: Formula: Asset book value = Purchase price - Accumulated depreciation
Step by step
Solved in 2 steps with 2 images
- Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of P10,000 trade discount 800,000 Non-refundable purchase taxes 20,000 Delivery and handling costs 40,000 Installation costs 30,000 Present value of decommissioning and restoration costs 10,000 1.) How much is the initial cost of the equipment? A. P 890,000 B. P 820,000 C. P 900,000 D. P 870,000- Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of Php 10,000 trade discount Non-refundable purchase taxes Delivery and handling costs Installation costs 800,000 20,000 40,000 30,000 Present value of decommissioning and restoration Costs 10,000 How much is the initial cost of the equipment? a. 900,000 b. 820,000 c. 870,000 d. 890,000Platteville Corporation has the following account balances at 12/31/20: Amortization expense P 10,000 Trademark 80,000 Research and Development costs 100,000 Patent, net of P30,000 amortization 70,000 What amount should Platteville report for intangible assets on the 12/31/20 statement of financial position? 100,000 150,000 250,000 260,000
- MAP Ltd acquired a Machine from FAT Ltd for the following consideration:o Cash $65 000,o Land in the books of MAP Ltd the land is recorded at its cost of $750 000.It has a fair value of $700 000.MAP Ltd also agrees to assume the liability of the FAT Ltd bank loan of $95 000 as part ofthe Machine acquistion Calculate the acquisition cost of the Machine Provide the journal entries that would appear in MAP Ltd.’s books to accountfor the acquisition of the Machine.Pharoah Company, organized in 2022, has the following transactions related to intangible assets. 1/2/22 Purchased patent (7-year life) $605,500 4/1/22 Goodwill purchased (indefinite life) 360,000 7/1/22 Acquired 10-year franchise; expiration date 7/1/2032 600,000 9/1/22 Incurred research and development costs 182,000 (a1) Prepare the necessary entries to record these transactions. All costs incurred were for cash. Make the adjusting entries as of December 31, 2022, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit CreditJeremiah Corporation has provided the following information on intangible assets as follows: a. A patent was purchased from Isaiah Company for P5,000,000 on January 1, 20x1. On the acquisition date, the patent was estimated to have a useful life of 10 years. The patent had a net book value of P5,000,000 when Isaiah sold it to Jeremiah. b. On February 2, 20x2, a franchise was purchased from Daniel Company for P2,160,000. The contract that runs for 20 years provides that 5%of revenue from the franchise must be paid to Daniel. Revenue from the franchise for 20x2 was P8,000,000. c. Jeremiah incurred the following research and development costs in 20x2: Materials and equipment P462,000 657,000 329,000 P1,448,000 Personnel Indirect costs Total Because of the recent events, Jeremiah, on January 1, 20x2, estimates that the remaining useful life of the patent purchased on January 1, 20x1, is only five (5) years from January 1, 20x2. 1. On December 31, 20x2, the carrying value of the patent…
- 14 Majestic LLC purchased a factory for lump-sum of RO800,000 paid via bank. The fair value of each of component of the purchase is given below: Asset Fair Market value Land 85000 Building 155000 Equipment 460000 Calculate the amount at which each of the above components shall be recognized on purchase date and write the journal entry for recording purchase transaction. a. Dr Land Ac OMR 85000 Dr Building A/C 155000 Dr Equipment A/C 460000and Cr Cash A/C OMR 700000 b. Dr Land Ac OMR 97120 Dr Building A/C 177120 Dr Equipment A/C 525760 and Cr Cash A/C OMR 800000 c. None of the given options d. Dr Cash A/C OMR 800000 and Cr land A/c 97120 Cr Building A/C 177120 Equipment A/C 460000Jeremiah Corporation has provided the following information on intangible assets as follows:a. A patent was purchased from Isaiah Company for P5,000,000 on January 1, 20x1. On the acquisitiondate, the patent was estimated to have a useful life of 10 years. The patent had a net book value ofP5,000,000 when Isaiah sold it to Jeremiah.b. On February 2, 20x2, a franchise was purchased from Daniel Company for P2,160,000. The contractthat runs for 20 years provides that 5%of revenue from the franchise must be paid to Daniel. Revenuefrom the franchise for 20x2 was P8,000,000.c. Jeremiah incurred the following research and development costs in 20x2:Materials and equipment P462,000Personnel 657,000Indirect costs 329,000Total P1,448,000Because of the recent events, Jeremiah, on January 1, 20x2, estimates that the remaining useful life of thepatent purchased on January 1, 20x1, is only five (5) years from January 1, 20x2.1. On December 31, 20x2, the carrying value of the patent should be…ABC Co. is acquiring XYZ Inc. XYZ has the following intangible assets: Customer list with an observable fair value of $45,000 Identifiable research and development costs of $150,000 A 5-year operating lease with favorable terms having a discounted present value of $6,000. Patent on a product that is deemed to have no useful life $15,000. ABC will record how much for acquired Intangible Assets from the purchase of XYZ Inc?
- During 2021, ABC Co. purchased intangible assets and debited them all to "Intangible assets". $250,000 $66,000 $50,000 1-Jan Patent 7-Year Life 1-Jun Goodwill Indefinite Life 1-Oct Research and development costs (a). Prepare a journal entry to reclassify them to an intangible asset account and/or expense account. (b). Prepare a journal entry to record amortization expense as of December 31, 2021.During 2022, Pfeiffer Co. purchased intangible assets and debited them all to "Intangible assets". 1-Jan Research and development costs $52,000 1-Jun Goodwill Indefinite Life $64,000 1-Oct Patent 7-Year Life $252,000 (a). Prepare a journal entry to reclassify them to an intangible asset account and/or expense account. (b). Prepare a journal entry to record amortization expense as of December 31, 2022.4. ABC Corporation has provided information on intangible assets as follows:A patent was purchased from Sinigang Company for P6,000,000 on January 1, 20X1. On the acquisition date, the patent was estimated to have a useful life of 10 years, The patent had a net book value of P6,000,000 when XYZ sold it to ABC.• On February 1, 20X2, a franchise was purchased from Franchisor Company for P1,440,000. The contract which runs for 20 years provides that 5% of revenue from the franchise must be paid to Franchisor. Revenue from the franchise for 20X2 was P7,500,000.• The following research and development costs were incurred by ABC in 20X2:Materials and equipment 426,000Personnel 567,000Indirect costs 306,000Because of recent events, ABC, on January 1, 20X2, estimates that the remaining useful life of the patent purchased on January 1, 20X1 is only 5 years from January 1, 20X2. The unamortized cost of the franchise on December 31, 2012, should be?