In 2020, Gain Inc. purchased all of the assets of Cookie’s business. As part of this purchase, Gain Inc. purchased the following intangible assets: • $ 270,000 for a 5-year agreement in which Cookie cannot compete with Gain. • $ 720,000 for Goodwill. Gain plans to be in business for 30 years. How much will Gain Inc. deduct as amortization in 2020 if they commence business on 4/15/20? a. $58,500 b. $49,500 c. $46,750 d. $40,500 e. $31,500

Q: On December 31, 2021, Purple Company sold a building, receiving as a consideration a P4,000,000…

A: Here in this question, we are required to calculate gain or loss from sale of asset. When any asset…

Q: Avocado Inc. acquire a machinery at a cost of P10,000,000 on January 1, 2021 to be used in the…

A: The question is related to the Depreciation Accounting. The details are given regarding the same.

Q: ) Young Company has provided information on intan- gible assets as follows. A patent was purchased…

A: The amortization cost for the year 2019 is $100,000. The amortization cost of patent is calculated…

Q: On Jan. 1, 2020, ABC Corporation purchased an equipment with a cost of P4,400,000. The equipment has…

A: Depreciation as per sum of digits of years  Sum = 1 + 2 + 3 + 4 + 5 + 6 = 21 Depreciation ratios…

Q: On January 2, 2020, Maelet Co. purchased a franchise with a useful life of ten years for P600,000.…

A: given information franchise cost = p600000 useful years = 10 years straight-line method is used in…

Q: what is the carrying value of the intangible assts at December 31, 2020?

A: Carrying Value of intangible assets is shown in the balance sheet part where  Calculation of the…

Q: On January 1, 2021, an entity purchased a building to be leased to a 3rd party. The cost of the…

A: Depreciation of building (in million) = (Rp 320 - Rp20)/20 years = Rp 15 million per annum…

Q: On January 1 of the current year, Lemon Meyer Corporation purchases the net assets of Vivien's…

A: Book Value of an asset is the cost of the asset reduced by accumulated depreciation.  Fair market…

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: amortization expense in 2024?

A: The Blue company has bought the trademark from shoes inc. for P300,000 then the amortization cost in…

Q: by issuing 1,000 ₱1,000 8% bonds, currently quoted at 103. Provided that the entity is using the SYD…

A: Depreciation expense refers to the reduction in the cost of a fixed asset due to its use or passage…

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: On January 1, 2020, CPA Corporation sold a piece of equipment that was acquired ten years ago for…

A: Solution: Fair value of equipment sold = Present value of non interest bearing note = P300,000 * PV…

Q: On June 2, 2021, Tabitha Co. purchased a franchise for $589,000 by signing a five-year contract. At…

A: Cost of franchise  = $589000 Contract period = 5 years Amortization per year  = $589000/5 =$117800

Q: On January 1, 2020, VKS Corporation sold a piece of equipment that was acquired ten years ago for…

A: Net book value of equipment  sold = Purchase costs -  accumulated depreciation = P350,000 - 240,000…

Q: On June 7, 2006, Hawk Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain…

A: The gain arises when the selling price is greater than the purchase price of the asset. The revenue…

Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…

A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…

Q: book value of P60,000, the term of the sale were as follows: P120,000 down payment  P120,000…

A: The amortized cost of note receivable will be the present value of three annual amount be received.

Q: On December 31,2021, PAUL Corporation sold for P480,000 an old machine having an original cost of…

A: Sale price                               480000 less: down payment.              120000  Balance to…

Q: BROWN Company is indebted to WHITE Company under a ₱4,000,000, 12%, three-year note dated December…

A: Debt restructuring schemes are those schemes which are implementing for changing the the structure…

Q: In 2020, Julie Co purchased a property with the mineral deposit for P30,000,000. The property had a…

A: Depletion is the reduction in the value of the natural resources like time, coal, oil etc. Depletion…

Q: On December 31, 2021, Purple Company sold a building, receiving as a consideration a P4,000,000…

A: Calculation of Sale Consideration The note received is a non-interest-bearing note and face value of…

Q: Ayala Corporation purchased equipment for P5,000,000 on January 1, 2020 with a useful life of 10…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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, 2019, Format Company sold a tract of land that was acquired several years ago for…

A: solution : given face value of note       =4,500,000 coupon rate                 = nil market…

Q: On June 7, 2021, James Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain…

A: Solution Concept The sale proceed shall be recorded in the period when such sale was made and not…

Q: On April 1, 2019, Fastener Corporation, a calendar year, cash method C-Corporation, sold land that…

A: Workings:   Purchase price in Feb, 2004 = $400,000 Selling price( $100000+200,000+$300,000) =…

Q: On September 1, 2019, Winans Corporation acquired Aumont Enterprises for a cash payment of £800,000.…

A: Given, Purchase consideration of £800,000 Assets fair value is £800,000 Liabilities amounts to…

Q: January 1, 2020, Caleb Co acquired the following intangible assets:        A trademark for…

A: An impairment loss is the carrying amount of an asset that is in excess of its recoverable amount.…

Q: On January 1, 2020, Grand Haven, Inc., reports net assets of $843,200 although equipment (with a…

A: In business combination, when an asset is acquired  then it should be  measured at Fair value

Q: On January 1, 2008, Ryan Company purchased a patent for P7,140,000. The patent is being amortized…

A: Patents are intangible assets and these are to be amortised over the life of useful period. They are…

Q: Information concerning Cheyenne Corporation’s intangible assets is as follows. 1.   On January 1,…

A: The initial franchise fees of $50,000 should be recorded as intangible asset in the balance sheet on…

Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…

A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…

Q: On October 7, 2020, Grace Gems purchased a basket of assets for the lump-sum price of $150,000. The…

A: Basis in asset Generally, the basis in the asset is the amount spent on purchasing the asset. It…

Q: .In Jan of 2018, Entity D purchased a patent at a cost of P200,000. Legal and filing fees of P50,000…

A: solution given Purchase cost 200000 Legal and filing fees 50000 Estimated life 10…

Q: On May 1, 2020, Hug Company leased equipment to Rave Company which expires on May 1, 2021. Rave…

A: Answer: Given Depreciation on equipment on lease for 2020 = P 360,000 Rental income of Hug= P…

Q: In 2022, Leo construction traded in a light duty pickup truck that had a book value of $18,000. A…

A: In 2022, Leo construction bought a light duty pickup truck having a fair market value of $55,236.…

Q: On May 7, 2021, Jimin Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain…

A: The solution for the above mentioned question is given in the following steps for your reference.

Q: in November 4, 2019, Blue Company acquired an asset (27.5-year residential real property) for…

A:

Q: DEE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its…

A:

Q: On January 1, 2020, The Corporation sold a piece of equipment that was acquired ten years ago for…

A: Solution: Fair value of equipment = Present value of note = P300,000 * PV of 1 at 12% for 2nd period…

Q: Information concerning Sandro Corporation's intangible assets is as follows. 1. On January 1, 2020,…

A: a.   Prepare a schedule showing the intangible assets section of S Corporation's balance sheet at…

Q: On March 10, 2020, Night Corporation purchased $2,400,000 of machinery and equipment (7-year…

A: Given that,  Night corporation purchased on March 10, 2020 7-year Machine and Equipment = $2400000…

Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…

A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…

Q: On June 30, 2020, Happee Inc. purchased goodwill of P125,000 when it acquired the net assets of Beam…

A: Given,   Goodwill acquired along with Net assets = P 125,000   Developed Goodwill costs: Training…

Q: BROWN Company is indebted to WHITE Company under a ₱4,000,000, 12%, three-year note dated December…

A: Here Brown company indebted to White company for the Notes payable of P 4000000 with the interest…

Q: square meters are still unsold and the market value of the lost had increased to P1,600 per square…

A: We have to find out the amout of gain as a result of transfer

Q: On January 1, 2017, Mae Company, an SME, purchased a patent for P7,140,000. The patent is being…

A: Patent is one of the intangible asset being held by the business. This type of assets can not be…

Q: Jasmin Company purchased an investment property on January 1, 2017 at a cost of P2,200,000. The…

A: Cost of investment property = 2200000 Use ful life = 40 years Deprecation for 2 years =2200000/40…