January 1, 2020, Cecilia Company purchased a patent from an original patentee for P2,400,000. The remaining legal life of the patent is 15 years but the useful life is only 12 years. On January 1, 2021, the entity paid P550,000 in successfully defending the patent in an infringement suit filed against the entity. On January 1, 2022, the entity acquired a competing patent for P1,500,000. The competing patent has a remaining legal life of 15 years but it is not to be used because it was intended to protect the original patent. What is the carrying amount of the patent on December 31, 2022?

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Q: .  If the patent has a remaining life of nine years, at what amount should the patent be reported on…

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A: Option 4th is correct "The fair value of the expected contingent payment increases goodwill at the…

Q: 0. The estimated useful life of the machine is 10 years, with no residual value. On the date of the…

A: When it is anticipated that a company's potential cash flows will increase as a consequence of a…

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A: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…

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A: 1. Value of contingent consideration shall be the additional pay of P 1500000 which would be paid if…

Q: Martinez’s journal entries

A: Date Particulars LF Debit$ Credit$ 07/01/2020 Common stock of Paulson Co…

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A: 1. Date Account Titles and Explanation Debit Credit July 15, 2021 Cash $750,000…

Q: On January 1, 2014, Aim Company showed patent of P1,920,000 with related accumulated amortization of…

A:

Q: On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been filed eight…

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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: amortization expense in 2024?

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

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A: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…

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A: Formulas:

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A: Investment is the process of generating income in the near future by investing in an asset which is…

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A: Amortization is the reduction in the worth of an intangible asset due to its regular usage.…

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A: Consolidation worksheet: It is a tool used to determine the final values of each item in both…

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A: Solution Common stock can be defined as securities that represent individuals ownership in a said…

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

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A:

Q: On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been filed eight…

A: Given the following information: On January 4, 2021, the Franc Company purchased for $27,000 a…

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A: As per IAS 38, any subsequent expenditure related to the intangible asset that has increased its…

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A: An Acquisition is a situation where one company purchases or acquires all or most of the stake of…

Q: On January 1, 2007, Taft Co. purchased a patent for 714,000. The patent is being amortized over its…

A: Solution We are provided with the following information Cost of patent =  714,000 Amortization time…

Q: The fair value of the expected contingent payment increases goodwill at the acquisition date.

A: As it is given in the above case that "Jordan’s profits exceed this threshold in both years". It…

Q: The TERRAN COMPANY acquired several small companies at the end of 2019 and based on the…

A: Answer -    Calculation of Total amortization of Intangible Assets in 2020 -    Particulars…

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A: Consolidated Work Sheet: Consolidated financial statements of a parent and its subsidiaries is…

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Q: In Colgate's December 31, 2019, Financial Position what amount should the trademark be reported?

A: Note: Assumed that Legal life of Trademark is 10 Years. Given: Cost of Trademark P300,000 Reporting…

Q: On January 1, 2009, Jonalyn Company purchased a patent from an original patentee for P2,400,000. The…

A: Patent: It implies to an intangible asset that does not have any physical existence and includes…

Q: Required: Applying the requirements of AASB116 Property, Plant, and Equipment; AASB 136 and any…

A: Introduction: Depreciation: Depreciation can be defined as a charge on fixed assets of the entity…

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A: Journal Entry:   It is a systematic record of a financial transaction recorded in chronological…

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A: The question is based on the concept of business transaction analysis.

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A: In this case, the Mighty company purchased 60% interest in Lowly company and Lowly company also…

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Q: R Company registered a patent on January 1, 2015. P Company purchased the patent from R Company for…

A: Note: As per relevant accounting standard, Legal life of patent is 20 years. It means patent will be…

Q: On January 1, 2019, Jericho Company purchased a patent for P7,140,000. The patent is being amortized…

A: Answer is option B) 4,896,000

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A: Intangible assets shall be amortized over the useful life of intangible assets.  Amortization…

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A: When an asset is provided by the lessor to the lessee, then that arrangement is described as a…

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A: The investment property refers to the investment that is either used for capital appreciation or for…

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A: Goodwill is the excess amount paid for acquisition which is over and above fair market of the…