INTERMEDIATE ACCOUNTING
10th Edition
ISBN: 9781264397921
Author: SPICELAND
Publisher: MCG
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Chapter 10, Problem 10.7DMP
1.
To determine
Intangible Assets:
These are the long-term assets having no physical existence. However, the benefits provided by these assets are used by the company for a long period of time. Example: Patent, Trademark,
To Discuss: The meaning of the term goodwill.
2.
To determine
To Indicate: The situation in which the controller of Corporation A would be correct in the valuation of goodwill.
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Students have asked these similar questions
LO 9
Assets
Cash + Patent +
94,000
ΝΑ
+
+
Exercise 8-20A Computing and recording the amortization of intangibles
Texas Manufacturing paid cash to purchase the assets of an existing company. Among the assets
purchased were the following items:
Goodwill
ΝΑ
Texas's financial condition just prior to the purchase of these assets is shown in the following
statements model:
=
Patent with 5 remaining years of legal life
Goodwill
Liab.
ΝΑ
Equity Rev.
+ 94,000
ΝΑ
Exp.
$36,000
40,000
ΝΑ
= Net Inc.
=
ΝΑ
Cash Flow
ΝΑ
Required
a. Compute the annual amortization expense for these items if applicable.
b. Record the purchase of the intangible assets and the related amortization expense for year 1
in a horizontal statements model like the preceding one.
c. Prepare the journal entries to record the purchase of the intangible assets and the related
amortization for year 1.
4G 46 10:14 O O O
01:56:04 Remaining
Multiple Choice
Y corporation acquired an
P8,000,000 yacht and transferred
in the name of its executive.
Compute the monetary value of
the fringe benefit.
P400,000
P1,600,000
P4,000,000
P8,000,000
56 of 60
3l 69% i 4:18 pm
QMLM Inc. acquired net assets of
Lizzi Corporation on January 1,2014,
for P700,000 in cash. This portion of
the consideration transferred results
in a fair value allocation of P35,000
to equipment and goodwill of
P88,000.At the acquisition date,
MLM also agrees to pay Lizzi previous
owners an additional P110,000 on
January 1,2016,if Lizzi earns a 10%
return on the fair value of its assets in
2014 and 2015. Lizzi's profits exceed
this threshold in both years. Which of
the following is true? *
The additional P110,000 payment is
a reduction in retained earnings.
The fair value of the expected
contingent payment increases
goodwill at the acquisition date.
Goodwill as of January 1,2016,
increases by P110,000
The P110,000 is recorded as an
expense in 2016.
Chapter 10 Solutions
INTERMEDIATE ACCOUNTING
Ch. 10 - Prob. 10.1QCh. 10 - Prob. 10.2QCh. 10 - Prob. 10.3QCh. 10 - Prob. 10.4QCh. 10 - Prob. 10.5QCh. 10 - Prob. 10.6QCh. 10 - When an asset is acquired and a note payable is...Ch. 10 - Explain how assets acquired in exchange for equity...Ch. 10 - Prob. 10.9QCh. 10 - What account is credited when a company receives...
Ch. 10 - Prob. 10.11QCh. 10 - Identify the two exceptions to valuing property,...Ch. 10 - In what situations is interest capitalized?Ch. 10 - Define average accumulated expenditures and...Ch. 10 - Explain the difference between the specific...Ch. 10 - Prob. 10.16QCh. 10 - Prob. 10.17QCh. 10 - Explain the accounting treatment of costs incurred...Ch. 10 - Explain the difference in the accounting treatment...Ch. 10 - Prob. 10.20QCh. 10 - Prob. 10.21QCh. 10 - Prob. 10.22QCh. 10 - Prob. 10.23QCh. 10 - Acquisition cost; machine LO101 Beavert on Lumber...Ch. 10 - Prob. 10.2BECh. 10 - Prob. 10.3BECh. 10 - Cost of a natural resource; asset retirement...Ch. 10 - Asset retirement obligation LO101 Refer to the...Ch. 10 - Prob. 10.6BECh. 10 - Prob. 10.8BECh. 10 - Prob. 10.11BECh. 10 - Nonmonetary exchange LO106 Refer to the situation...Ch. 10 - Nonmonetary exchange LO106 Refer to the situation...Ch. 10 - Prob. 10.14BECh. 10 - Prob. 10.15BECh. 10 - Research and development LO108 Maxtor Technology...Ch. 10 - Prob. 10.18BECh. 10 - Prob. 10.19BECh. 10 - Research and development; various types LO108...Ch. 10 - Prob. 10.21BECh. 10 - Acquisition cost; equipment LO101 Oaktree Company...Ch. 10 - Prob. 10.3ECh. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Acquisition costs; noninterest-bearing note ...Ch. 10 - Prob. 10.11ECh. 10 - Prob. 10.14ECh. 10 - Nonmonetary exchange LO106 [This is a variation...Ch. 10 - Prob. 10.16ECh. 10 - Nonmonetary exchange LO106 [This is a variation...Ch. 10 - Prob. 10.18ECh. 10 - Prob. 10.19ECh. 10 - Prob. 10.20ECh. 10 - FASB codification research LO101, LO106, LO107,...Ch. 10 - Prob. 10.30ECh. 10 - Prob. 10.31ECh. 10 - Prob. 10.32ECh. 10 - Intangibles; start-up costs LO101, LO108 Freitas...Ch. 10 - Prob. 10.1PCh. 10 - Prob. 10.4PCh. 10 - Acquisition costs; journal entries LO101, LO103,...Ch. 10 - Prob. 10.6PCh. 10 - Prob. 10.8PCh. 10 - Prob. 10.9PCh. 10 - Judgment Case 101 Acquisition costs LO101, LO103,...Ch. 10 - Judgment Case 104 Interest capitalization LO107...Ch. 10 - Prob. 10.6DMPCh. 10 - Prob. 10.7DMPCh. 10 - Judgment Case 108 Research and development LO108...Ch. 10 - Prob. 10.9DMPCh. 10 - Prob. 10.11DMPCh. 10 - Prob. 10.13DMPCh. 10 - Prob. 10.15DMPCh. 10 - Prob. 10.16DMP
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