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Acccob 2 - 7-1 7-10
Acccob 2 - 7-1 7-10
1. Intangible assets
2. Amortization
3.expense
4.Copyright
5. Franchise
6.Charged to expense
7.Purchase cost, fair values of net assets acquired
8.Amortized
9.Assets
10.technological feasibility
True or False
1. True
2.True
3.False
4.False
5.False
6.False
7.true
8. True
9. False
10.True
11.False
12.True
13.False
14.True
15. True
16.False
17.False
18.False
19. False
20.True
Multiple Choice
1. C.Brand Names
2.C. amoritzed over its useful life if less than 15 years
3. B.goodwill
4.A.₱ 21,600
5. D. All of the above
1. Patent. Dexter Company purchases a patent from santali COrporations for a ₱300,000 and incurs legal fees and
The patent's remaining life is 15 years, bu because of the market competition, its useful life is estimated to be only 1
a.What is the total acquisition cost of the patent
b.How much is the annual amortization of the patent
c. at what amount should the patent be reported on the statement of financial position after 3 years.
b. cost 400,000
useful life 10
annual amoritzation 40,000
c. cost 400,000
accumulated amortization 120,000
carrying value 280,000
₱300,000 and incurs legal fees and consulting fees related to the ourchase is the amounts of ₱40,000 and 60,000 respectively.
s useful life is estimated to be only 10 years.
Cost 135,000
useful life 40
annual amortization 3,375
legal fees of ₱15,000 related to the purchase. The estimated life economic life is 40 years. What is the amount of the annual am
e amount of the annual amortization?
3. Franchise. Seattle Corporation pays a franchise fee of ₱20 million to enable it to sell Good's product for the next
a. What is the amount of the annual amortization
b.what is the carrying amount of the franchise after 5 years
c.what is the decrease in income for the year
a. Cost 20,000,000
useful life 20
annual amortization 1,000,000
b. cost 20,000,000
accumulated amortizatio 5,000,000
carrying value 15,000,000
a. Before calculation for goodwill, what value should a purchaser assign to Danton, Inc.
b.Assume that a purchaser pays ₱7 million. How much is good will, if any
net assets
accounts recievable 400,000
building 5,800,000
machinery 500,000
total 6,700,000
b. 2020
cost 50,000
accumulated amortization 5,000
carrying value 45,000
2021
cost 50,000
accumulated amortization 10,000
carrying value 40,000
s of ₱50,000. In January 2021, Lerner Incurred ₱19,000 of legal fees in a successful defense of its patent. The company amort
tent. The company amortizes the patent over 10 years