3. On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. Required Compute the ending carrying value of the tradename for 2022 and 2023. Should the company amortize the tradename?
Q: On January 1, 2021, Weaver Corporation purchased a patent for $237,000. The remaining legal life is…
A: Intangible Assets: Intangible assets are the long-term assets having no physical existence.…
Q: 2021, Mill Corp. incurred a 100,000 net loss from disposal of a business segment. Also, on June 30,…
A: Solution: Loss from disposal of a business segment will be full included in the net income or loss…
Q: On Jan. 1, 2022, ABC Co. sold a machinery to XYZ Co. for P1,900,000. Because of the entity's…
A: The lease liability is a sum of all discounted future lease payments. In this case, only lease…
Q: On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor)…
A: This is a case if sale and lease back and will be covered under IFRS 15
Q: At what amount should the equipment be measured on December 31, 2021? * 2. Beauty Company accounted…
A: Non-Current Asset held for sale: If the majority of the carrying value of a non-current asset is…
Q: Discuss the implication of the transactions and state the journal entries on January 1, 2020
A:
Q: On January 2, 2018, David Corporation purchased a patent for $500,000. The remaining legal life is…
A:
Q: Mannenberg Ltd is a manufacturing company and its year-end is 31 December 2020. The following de…
A: To a company's stakeholders, a financial statement disclosure will communicate essential information…
Q: On December 31, 2021, Purple Company sold a building, receiving as a consideration a P4,000,000…
A: Present value of 1 for three period at 12% = 0.711780 Hence present value of P4,000,000 =…
Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…
A: The intangible assets of a company are referred to as all those long-term assets that do not have a…
Q: 4. Orange Enterprises had the following transactions: On December 28, 2021, paid property taxes for…
A: The expense recognition is based on the concept of accrual accounting. Property taxes paid for the…
Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…
A: Tradename is a form of intangible assets in the business, which is the part of balance sheet or…
Q: 1. On January 1, 2018, Navy Company purchased Patent X from the inventor at a price of P180,000.…
A: The question is related to Intangible Assets. Required a. Entries to record purchase of patent X…
Q: gain or loss should Purple report on the sale of the asset?
A: Gain or loss on sale of asset = Present value of consideration received Less: Book value of Building…
Q: 3. On January 1, 2022, when the company changed its corporate strategy, its patent had estimated…
A: An impairment loss is the reduction in the carrying value of an asset and the decrease is higher…
Q: On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor)…
A: According to the facts of the case, the transfer to MacCo is meeting definition of a sale under IFRS…
Q: amortization expense in 2024?
A: The Blue company has bought the trademark from shoes inc. for P300,000 then the amortization cost in…
Q: Don Camilo Company, a real estate entity, had a building in Legarda Rd. with a carrying amount of…
A: Carrying Amount of the Building = P20,000,000 Fair Value of the Building = P35,000,000 Useful life =…
Q: NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN…
A: Given : NOREEN INC, sells a truck to MENDOZA INC = P3,000,000 NOREEN agrees to repurchase the…
Q: . JBC Company, a car rental company, acquires vehicles with the intention of holding them as rental…
A: Fixed assets means the asset which is used by company for many years to come for the purpose of…
Q: On January 2, 2018,Judd Co. bought a trademark from Krug Co. for P500,000. Judd retained an…
A: Amortization is the reduction in the worth of an intangible asset due to its regular usage.…
Q: Bravo Company purchased a two-year insurance policy on August 1, 2021 for P28,800. Using an asset…
A: When insurance is purchased for future years then the expense shall be deferred to future years.
Q: At what amount should the non-current liability be presented in the statement of financial position?
A: According to IAS 1, a noncurrent liability is one that is not a current liability Further, the…
Q: Discuss the implication of the transactions and state the journal entries on January 1, 2020 for…
A: Introduction: Lease: Lease can be defined as a legal agreement between the lessor and the lessee in…
Q: On January 1, 2018, Joel Company purchased a patent for P7,140,000. The patent is being amortized…
A: As per IAS 8, Accounting policies,Changes in accounting estimates and errors A change in legal life…
Q: On January 1, 2021, The Donut Stop purchased a patent for $75,000. At that time, the remaining legal…
A: 1. Date General Journal Debit Credit Jan 01, 2021 Patent $75,000 Cash…
Q: M issues a negotiable BOE payable to P or order for P10,000. P endorsed the instrument to A, then A…
A: In the absence of a contract, whoever endorses and delivers a negotiable instrument before maturity…
Q: On June 30, 2021, Coco Inc. incurred a P2,000,000 net loss from disposal of a business segment. Also…
A: The question is related to Interim period is a period less than one fiscal year. Generally…
Q: On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is…
A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization…
Q: 4. Blade Corporation spent P500,000 for R&D expenses to develop a patent which is registered on Jan.…
A: Amortization of Patent: Amortization of patent is same like straight-line depreciation calculations…
Q: On January 1, 2021, ABC Company purchased P600,000, a trademark with an estimated useful life of 16…
A: As per IAS 38, any subsequent expenditure related to the intangible asset that has increased its…
Q: On January 31, 2022, RUBY Company agreed to pay the former president P300,000 under a deferred…
A: Introduction: Deferred compensation is a type of compensation plan that allows employees to delay…
Q: Discuss the implication of the transactions and state the journal entries on January 1, 2020
A: Understanding implication: According to the facts of the case, the transfer to MacCo is meeting…
Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…
A: Tradename is a form of intangible assets in the business, which is the part of balance sheet or…
Q: On January 1, 2021 Simon Co. purchased an item of equipment for P600,000, including P50,000…
A: Here discuss about the determination of initial cost which are incurred in the purchase of the…
Q: Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: 4. Orange Enterprises had the following transactions: On December 28, 2021, paid property taxes for…
A: As per accrual basis of accounting, Income and expenditures are to be recognized as and when they…
Q: On June 30, 2021, Line Company incurred a P100,000 net loss from disposal of a business segment.…
A: Loss from disposal of business segment = P 100000 Property taxes paid = 40000
Q: n June 30, 2021, Line Company incurred a P100,000 net loss from disposal of a business segment.…
A: Solution: Determination of net income or loss for the six-month interim period is based on the…
Q: Nona Co. purchased land worth P20,000,000 on January 1, 2021. The company uses the revaluation model…
A: Under revaluation model, Property plant and equipment is measured at an estimated fair value of the…
Q: In early January 2019, Outkast Corporation applied for a trade name, incurring legal costs of…
A:
Q: On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor)…
A: A lease is a written agreement that indicating the conditions within which a lessor acknowledges to…
Q: 4. JPIA Company incurred P298, 350 of research and development cost to develop a product for which a…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: In early January 2020, Sunland Corporation applied for and received approval for a trade name,…
A: Given, Total Legal fee paid in Early January 2020: $ 44800: Applied and received approval for…
Q: On January 1, 2021, Crucell N.V. sold an aeroengine along with a 4 year maintenance agreement to…
A: The contracts are negotiated as a single bundle or package with a single business objective
Q: On December 30, 2021, CHERRY Company paid P2,000,000 for the land. On December 31, 2021, the current…
A: Land and any other asset with an indefinite lifespan remain at cost. Fair value is not utilized to…
Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…
A: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…
Q: 1. On May 1, 2019, ABC Corporation bought a trademark from DEF Corporation for P300,000. Its…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Step by step
Solved in 2 steps
- . On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. RequiredCompute the ending carrying value of the tradename for 2022 and 2023. Should the company amortize the tradename? *Note: Show the solution step by step with formulaOn January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. Required Compute the ending carrying value of the tradename for 2022 and 2023. Should thecompany amortize the tradename?In early January 2020, Pharoah Corporation applied for and received approval for a trade name, incurring legal costs of $46,400. In early January 2021, Pharoah incurred $24,000 in legal fees in a successful defence of its trade name. Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount at December 31, 2021, if the company amortizes the trade name over its 16-year legal life. (Round answers to O decimal places, e.g. 5,275.) Amortization amount Carrying amount Amortization amount tA Carrying amount $ +A $ CA 2020 Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount at December 31, 2021, if the company amortizes the trade name over a useful life of 5 years. CA ta 2020 $ LA $ LA $ 2021 LA 2021
- Current Attempt in Progress In early January 2020, Sunland Corporation applied for and received approval for a trade name, incurring legal costs of $44,800. In early January 2021, Sunland incurred $25,500 in legal fees in a successful defence of its trade name. (b) Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount at December 31, 2021, if the company amortizes the trade name over its 16-year legal life. (Round answers to O decimal places, e.g. 5,275.) 2020 2021 Amortization amount %$4 $4 %24 %24 Carrying amount Attempts: 0 of 1 used Submit Answer Save for Later. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. e here to searchIn early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of P160,000. Based on new market research, HUMID determines that the market value of the trade name is P120,000. In January 2021, HUMID incurred P7,800 of legal fees in a successful defense of its trade name. Trade name should be amortized based on legal life. What is the cost of Tradename? P120,000 P160,000 P280,000 O P167,800In early January 2024, Bramble Corporation applied for a trade name, incurring legal costs of $16,200. In January 2025, Bramble incurred $7,200 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization $ 12/31/24 book value $ 2025 amortization $ 12/31/25 book value $
- In early January 2024, Ayayai Corporation applied for a trade name, incurring legal costs of $15,800. In January 2025, Ayayai incurred $7,200 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization 12/31/24 book value 2025 amortization 12/31/25 book value $ LA LA $ of SUPPORTIn early January 2024, Cheyenne Corporation applied for a trade name, incurring legal costs of $16,000. In January 2025, Cheyenne incurred $8,100 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization $ 12/31/24 book value $ 2025 amortization $ 12/31/25 book value $In early January 2024, Monty Corporation applied for a trade name, incurring legal costs of $16,800. In January 2025, Monty incurred $7,200 of legal fees in a successful defense of its trade name. (a) Your answer is correct. Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization (b) 12/31/24 book value 2025 amortization Question Part Score $ $ 12/31/25 book value $ $ eTextbook and Media 2025 amortization Your answer is correct. $ 1680 12/31/25 book value $ 15120 2480 Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025, Monty determines that the trade name will provide no future benefits beyond December 31, 2028. 19840 5580 Attempts: 1 of 4 used 16740 2/2
- Provide the necessary accounting entries: A patent right is acquired July 1,2021, for P250,000; while it has a legal life of 15 years, due to rapidly changing technology, management estimates a useful life of only five years. "Netting" method, straight-line amortization will be used. At January 1, 2022, management is uncertain that the process can actually be made economically feasible, and decides to write down the patent to an estimated market value of P75,000. Amortization will be taken over three years from that point. On January 1, 2024, having perfected the related production process, the asset is now appraised at a depreciated replacement cost of P300,000. Furthermore, the estimated useful life is now believed to be six more years.In early January 2019, Outkast Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Outkast incurred $7,800 of legal fees in a successful defense of its trade name. Instructions a. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years. b. Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Outkast determines that the trade name will provide no future benefits beyond December 31, 2023. c. Ignoring the response for part .b., compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Outkast determines that the fair value of the trade name is $15,000. Estimated total future cash flows from the trade name is $16,000 on January 3, 2021.The following is selected information for Sunland Company. Answer the questions asked about each of the factual situations. (Do not leave any answer field blank. Enter o for amounts) 1. Sunland purchased a patent from Vania Co. for $1,280,000 on January 1, 2023. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2033. During 2025, Sunland determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2025? The amount to be reported $ 2. Sunland bought a franchise from Alexander Co. on January 1, 2024, for $390,000. The carrying amount of the franchise on Alexander's books on January 1, 2024, was $390,000. The franchise agreement had an estimated useful life of 30 years. Because Sunland must enter a competitive bidding at the end of 2026, it is unlikely that the franchise…