Problem 1
1) Purchase recipes & secret formulas
Licensing, royalty, & stand-stll agreement
‘Operating & broadeast rights
Goodwill purchased in a business combination
License from government grant
Cost of purchasing patent
Legal cost in securing patent
Cost of purchasing trademark
Leasehold rights
‘Total Intangible Assets
bem 2
1) Legal cost of acquiring copyright
Documentation expense related to copy acquisition
‘Total amount to be initially recognized as copyright
2) Total amount to be
lly recognized as copyright
‘Carrying value of the copyright, 1231.11
Problem 3
1) Trademark
Customer list
Franchise
Goodwill
‘Total Intangible Assets
2) Carrying value of intangibles, June 30, 2011
Amortization
Trademark
£600000/4years x 6/12
Customer list
1125000/3years x 6/12
Franchise
'525000/5years x 6/12
Carrying value of intangibles, December 31, 2011
225,000
450,000
168,000
730,000
225,000
262,500
205,500
105,000
375,000
150,000
2,916,000
15,000,000
1,500,000
16,500,000
4/5
13,200,000
600,000
1,125,000
525,000
3,000,000,
5,250,000
75,000
187,500
315,000)
4:935,000
wdProblem 4
1) Initial recognition of license
@ Fair Value
‘Add: Directly attributable cost
Total
2) Cost of license
Less: Amortization
2,325,000/10 years
Carrying Value, December 31, 2012
Problem §
1) Downpayment
Present Value of Instllment
2,700,000 x 3.60478
Total
2) Cost of Franchise
Less: Amortization
11,232,906/20 years
1) Initial recognition of intangible asset:
Expenditure after meeting the criteria for
recognition a intangible asset
2) Initial Cost
Additional capitalizable cost
Total
Recoverable Value
Intangible Asset, December 31, 2012 (lower)
2,250,000,
2,325,000
2,325,000,
232500
772,500
1,500,000
9,732,905
11,232,906
11,232,906
581.545
Tosriget
150,000
3,000,000
3.150.000"
—2:850,000,
2,850,000Problem 7
1) Initial Recognition of Patent:
2) Cost of patent, January 2, 2005
Less: Amortization
930,000/20 years
Carrying value, December 31, 2005
3) Carrying value, December 31, 2005
Less: Amortization
'930,000/20 years x3 years
Carrying value, December 31, 2008
‘Add: acquisition cost of competing patent
New carrying value
Less: Amortization
1,353,000/16 years
Carrying value, December 31, 2009
4) Carrying value, December 31, 2009
Add: Cost of related patent
Total
Less: Amortization over extended life
2,250,000/17 years x2
Carrying value, December 31, 2011
5) Carrying value, December 31,2011
Total loss from patent write-off
930,000
930,000
46,500
383,500
883,500
139,500
"744,000
609,000
1,353,000
84565,
1368.08
1,268,438
081553,
7,250,000
264,706
7,985,294
1,985,294
is
FESEITI
and