Which of the following factors is NOT considered in determining the useful life of an intangible asset? Expected actions of competitors O Expected usage of the asset O Legal or contractual provisions Initial cost
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- 18 Fair value less cost to sell: P650,000 Value in use:P750,000 Carrying amount:P1,010,000 Compute the impairment loss Group of answer choices P160,000 P100,000 P260,000 P360,00036 ______________ spreads the depreciable cost evenly over the estimated useful life of the asset. a. None of the given options b. Straight-line method c. Declining-balance method d. Units of production method Clear my choice1. What is the carrying amount of the biological assets on December 31? а. 3,160,000 b. 2,350,000 c. 2,800,000 d. 2,380,000 What amount should be reported as gain from change in fair value attributable to price change? a. 810,000 b. 450,000 c. 360,000 d. 0. 3. What amount should be reported as gain from change in fair value attributable to physical change? а. 810,000 b. 450,000 c. 360,000 d. 700,000
- Enter Co. determined the following information for the purpose of testing its investment in associate for impairment: Carrying amount of investment (including ₱100,000 goodwill) 1,600,000 Fair value less costs of disposal (FVLCD) 1,440,000 Value in use (VIU) 1,380,000 How much is the impairment loss? 160,000 b. 220,000 c. 60,000 d. 0Which of the following statements are true about the revaluation model perIAS 16 Property, Plant and Equipment?1) Excess depreciation as a result of a revaluation exercise can betransferred between reserves2) Depreciation must be charged based on the historical cost of theasset3) All assets of the same class must be revalued4) Valuations must be independent and carried out regularly Which is correct ?a) 1, 3 and 4b) All of the abovec) 1 and 3d) 2, 3 and 4True or False _____ PAS 16 defines depreciation as "the decrease in the value of an asset." ______ According to PAS 16, items of PPE are initially measured at cost and subsequently measured using either the cost model or the fair value model. _______ an entity acquires an asset for P120k. The asset is estimated to have a useful life of 10 years and a residual value P20K. tHE STRAIGHT LINE DEPRECIATION RATE BASED ON DEPRECIABE AMOUNT IS 10% _______ An entity acquires an asset for P1M. A P200k residual value is estimated for the asset. Ar the end of the asset's useful life, the accumulated depreciation wil be equal to P1M. _______ A machine acquired on the 20th of Julyv(and ready for its intended use as at this date) would most likely be depreciated starting on the 1st of August. _______ A change in the depreciation method, useful life or residual value of a PPE is accounted for retrospectively.
- What is proper time or time period over which to match the cost of an intangible asset with revenues if it is likely that the benfit of the asset will last fro an indefinite period? a. 40 yrs b. 50 yrs c. immediately d. at such time as reduction in value can be quantitatively determined e. either a or b f. none from the choices givenPQ16.03 Equipment with a cost of $450,000 has an estimated salvage value of $30,000 and an estimated life of 4 years or 10,000 hours. It is to be depreciated by the declining balance method. What is the amount of depreciation for the first full year, during which the equipment was used 2,700 hours?A fixed asset with a cost of $31,365.00 and accumulated depreciation of $28,228.50 is sold for $5,332.05. What is the amount of the gain or loss on disposal of the fixed asset? Select the correct answer. $3,136.50 loss $2,195.55 loss $2,195.55 gain $3,136.50 gain
- The components of the cost of a major item of equipment are given below.GHSPurchase price 780,000Import duties 117,000VAT (refundable) 78,000Site preparation 30,000Installation costs 28,000Pre-production costs 18,000Initial operating losses before the asset reaches planned performance 50,000Estimated cost of dismantling and removal of the asset, recognized as a provision under IAS 37 Provisions,Contingent Liabilities and Contingent Assets 100,0001,201,000In accordance with IAS 16 Property, Plant and Equipment, what amount should be recognized as the cost of the asset?11. ABC Company owns a noncurrent asset, which is damaged and is to be reviewed for impairment, to which the following information relates:Current carrying amount - 200,000Fair value - 220,000Expected disposal cost - 10,000Value in use - 205,000What should be the carrying amount of the asset after the impairment review?E12.1B (L0 1,2) (Classification Issues—Intangibles) Presented below is a list of items that could be included in the intan- gibleassets section of the balance sheet. 1. Cost of purchasing a patent from an inventor. 2. Unrecovered costs of a successful legal suit to protect the patent. 3. Cost of purchasing a copyright. 4. Long-term receivables. 5. Cost of purchasing a trademark. 6. Cost of developing a trademark. 7. Research and development costs. 8. Cost of conceptual formulation of possible product alternatives. 9. Legal costs incurred in securing a patent. 10. Cost of developing a patent. 11. Timberland. 12. Lease prepayment (6 months’ rent paid in advance). 13. Cost of searching for applications of new research findings. 14. Operating losses incurred in the start-up of a business. 15. Purchase cost of a franchise. 16. Goodwill generated internally. 17. Goodwill acquired in the purchase of a business. 18. Cost of testing in search for product alternatives. 19. Training costs…
