ABC Co. is acquiring XYZ Inc. XYZ has the following unrecorded intangible assets: Patent on a product P10,000. Customer list with an observable fair value of P50,000. A 5-year operating lease with favorable terms with a discounted present value of P8,000. Skilled workforce, P150,000 Identifiable R&D of P100,000 Advertising contracts, P12,000. ABC will record how much for acquired Intangible Assets from the purchase of XYZ Inc.?

ABC Co. is acquiring XYZ Inc. XYZ has the following unrecorded intangible assets: Patent on a product P10,000. Customer list with an observable fair value of P50,000. A 5-year operating lease with favorable terms with a discounted present value of P8,000. Skilled workforce, P150,000 Identifiable R&D of P100,000 Advertising contracts, P12,000. ABC will record how much for acquired Intangible Assets from the purchase of XYZ Inc.?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11P

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