CL successfully defended its trade name in January 2018, incurring P4,900 in legal fees. At the beginning of 2019, based on new marketing research, SCL determines that the recoverable amount of the trade name is P16,500. Instructions Prepare the necessary journal entries for the years ending December 31, 2017, 2018, and 2019. Show all computations.
CL successfully defended its trade name in January 2018, incurring P4,900 in legal fees. At the beginning of 2019, based on new marketing research, SCL determines that the recoverable amount of the trade name is P16,500. Instructions Prepare the necessary journal entries for the years ending December 31, 2017, 2018, and 2019. Show all computations.
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 7MC
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Problem I
SCL Corp. obtained a trade name in January 2017, incurring legal costs of P20,000. The company amortizes the trade name over 8 years. SCL successfully defended its trade name in January 2018, incurring P4,900 in legal fees. At the beginning of 2019, based on new marketing research , SCL determines that the recoverable amount of the trade name is P16,500.
Instructions
Prepare the necessary journal entries for the years ending December 31, 2017, 2018, and 2019. Show all computations.
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