Академический Документы
Профессиональный Документы
Культура Документы
INTANGIBLE ASSETS
PROBLEMS
6-1
(Daydream Corporation)
a.
Expense, cost of internally developed publishing title is not allowed to be capitalized.
b.
Intangible
c.
Expense
d.
Intangible
e.
Intangible
f.
Prepaid expense
g.
With alternative use, PPE; otherwise, unrecoverable cost, R and D expense
h.
Charged to RE
i.
Expense
j.
Intangible
k.
Intangible
l.
Expense
m.
Expense, copyright shall be written off in profit or loss
n.
Expense
o.
Expense
p.
PPE
q.
Expense
6-2
(Amsterdam Enterprises)
a.
Special equipment (600,000 460,000)
Research salaries
Costs of testing prototype
R & D Expense
P140,000
51,300
70,800
P262,100
b.
c.
d.
7,500
14,100
38,100
P 59,700
11,940
P 47,760
P 41,790
5
P 8,358
P41,790
8,358
P33,432
6-3
6-4
(May Company)
Patents
Cost
Less accumulated amortization
36,000 + (156,000 8)
License
Cost (80 x 600 x 2/3)
Less accumulated amortization (32,000/4)
Trademark
Cost (80 x 600 x 1/3)
Less accumulated amortization (16,000/4)
Goodwill (12M 8M)
Total intangible assets
P192,000
55,500
P 32,000
8,000
P 16,000
4,000
136,500
24,000
12,000
4,000,000
P4,172,500
(July, Inc.)
2005
Jan. 3
Patents
Cash
196,000
196,000
2005-2008
Dec. 31
2009
Jan. 1
Dec. 31
2010
Jan. 1
19,600
Legal Fees
Cash
28,000
Amortization Expense
Accumulated Amortization-Patents
19,600
Patents
Cash
60,000
Amortization Expense
Accumulated Amortization-Patents
15,800
19,600
28,000
19,600
60,000
2010-2012
Dec. 31
15,800
July 1
Amortization Expense
Accumulated Amortization-Patents
15,800 x 6/13 = 7,900
Loss from Writeoff of Patents
Accumulated Amortization-Patents
Patents
196,000 + 60,000 = 256,000
98,000 + (15,800 x 3.5 yrs) = 153,300
59
7,900
7,900
102,700
153,300
256,000
6-5
(Boston Company)
a.
Patent cost
Estimated useful life
Amortization per year
Amortization expense for 2010 (100,000 x 6/13)
b.
P350,000
150,000
P200,000
c.
P150,000
P600,000
100,000
P500,000
d.
6-6
P500,000
5 yrs.
P100,000
P 50,000
50,000
P100,000
P200,000
(Summer Company)
2010
R & D Expense
Cash
50,000
150,000
P350,000
500,000
500,000
2011
Jan. 1
Dec. 31
Patents
Cash
120,000
120,000
Amortization Expense
Accumulated Amortization-Patents
12,000
12,000
2012
Jan. 1
2012-2013
Dec. 31
2013
Dec. 31
6-7
Patents
Cash
1,200,000
1,200,000
Amortization Expense
Accumulated Amortization-Patents
(120,000-12,000) + 1,200,000 = 1,308,000
1,308,000/16 = 87,200
Loss from Writedown of Patents
Accumulated Amortization
Patents
(April Company)
Laboratory research
Modification of formulation
Testing
Searching for application
Depreciation of equipment (280,000/5)
R & D costs for 2013
87,200
87,200
1,133,600
186,400
1,320,000
P 68,000
26,000
24,000
19,000
56,000
P193,000
60
6-8
(Autumn Company)
a.
2013
Franchise
Cash
Dec.
Dec.
31
31
b.
Dec. 31
6,250,000
6,250,000
500,000
Amortization Expense
Accumulated Amortization-Franchise
6,250,000/11 = 625,000; 625,000 x 1/2
312,500
Amortization Expense
Accumulated Amortization-Patents
750,000 x 9.5/11 = 712,500; 712,500 / 5
142,500
500,000
312,500
142,500
c.
R & D Expense
Equipment
Accumulated Depreciation-Equipment
Cash
2,300,000
1,000,000
100,000
3,200,000
R&D=200,000+1,400,000+600,000+100,000= 2,300,000
(1,000,000 / 5) x = 100,000
6-9
(Winter Company)
a.
Fair value of net assets
(1,000,000 + 1,700,000 + 5,900,000 2.360,000)
Cash purchase price
Goodwill
b.
6-10
1,000,000
1,700,000
5,900,000
760,000
760,000
1,600,000
7,000,000
6-11
Trade Receivables
Inventory
Property, Plant and Equipment
Goodwill
Current Liabilities
Noncurrent Liabilities
Cash
P6,240,000
7,000,000
P 760,000
800,000
500,000
1,300,000
Amortization Expense
Accumulated Amortization-Software Costs
500,000 / 4 years = 125,000
500,000 x 1/5 = 100,000
(Sun Company)
a.
Downpayment
Present value of future payments
200,000 x 2.4869
Total cost
125,000
125,000
P400,000
497,380
P897,380
61
b.
P89,738
c.
2013
Jan. 1
Franchise
Discount on Notes Payable
Cash
Notes Payable
Dec. 31
31
897,380
102,620
400,000
600,000
Interest Expense
Discount on Notes Payable
10% x 497,380 = 49,738
49,738
Amortization Expense
Accumulated Amortization-Franchise
89,738
49,738
89,738
2011
Jan. 1
6-12
Notes Payable
Cash
200,000
200,000
P13,100,000
13,400,000
P 300,000
Impairment Loss
Goodwill
b.
300,000
300,000
62
Theory
MC1
D
MC2
B
MC3
A
MC4
B
MC5
B
MC6
MC7
MC8
MC9
MC10
Problems
MC21
D
MC22
A
MC23
C
MC24
B
MC25
MC26
MC27
MC28
MC29
MC30
MC31
MC32
MC33
MC34
MC35
MC36
MC37
MC38
MC39
MC40
MC41
MC42
MC43
MC44
MC45
B
C
C
B
A
C
C
A
A
C
B
C
B
D
A
B
B
C
C
A
D
B
D
B
C
MC11
MC12
MC13
MC14
MC15
D
A
D
B
A
MC16
MC17
MC18
MC19
MC20
B
C
C
D
C
63