13. You noted the following transactions during 20X0: Jan. 2 - Paid legal fees of P450,000 and stock certificate costs of P249,000 to complete the organization of the corporation. Jan. 15 - Hired a clown to stand in front of the corporate office for 2 weeks and hound out pamphlets and candy to create goodwill for the new entity. Clown cost, P30,000 pamphlets, and candy, P15,000. Apr. 1 - Patented a newly developed process with costs as follows: Legal fees to obtain a patent - 1,287,000 and Patent application and licensing fees - 190,500. It is estimated that in 6 years other companies will have developed improved processes, making the ABC Corporation process obsolete. May 1 - Acquired both a license to use a special type of container and a distinctive trademark to be printed on the container in exchange for 18,000 shares of ABC’s no-par ordinary shares selling for P50 per share. The license is worth twice as much as the trademark, both of which may be used for 6 years. July 1 Constructed a shed for P3,930,000 to house prototypes of experimental models to be developed in future research projects. Dec 31 Incurred salaries for an engineer and chemist involved in product development totaling P750,000 in 2010. It is the company’s policy to take full-year amortization in the year of acquisition. The cost of the patent, licenses, and trademark, respectively are? (sample answer: 10,000, 12,000, 15,000)
13. You noted the following transactions during 20X0:
Jan. 2 - Paid legal fees of P450,000 and stock certificate costs of P249,000 to complete the organization of the corporation.
Jan. 15 - Hired a clown to stand in front of the corporate office for 2 weeks and hound out pamphlets and candy to create
Apr. 1 - Patented a newly developed
May 1 - Acquired both a license to use a special type of container and a distinctive trademark to be printed on the container in exchange for 18,000 shares of ABC’s no-par ordinary shares selling for P50 per share. The license is worth twice as much as the trademark, both of which may be used for 6 years.
July 1 Constructed a shed for P3,930,000 to house prototypes of experimental models to be developed in future research projects.
Dec 31 Incurred salaries for an engineer and chemist involved in product development totaling P750,000 in 2010.
It is the company’s policy to take full-year amortization in the year of acquisition. The cost of the patent, licenses, and trademark, respectively are? (sample answer: 10,000, 12,000, 15,000)
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