Eurofoam LLC issued 8,000 shares of OMR 10 each in order to procure a patent of latest technology developed by Oxfom LLC. The original cost of patent was OMR 82,000. The market values of the shares issued by Eurofoam LLC stood OMR 11.5 each. What shall be the value of patent in the books of Eurofoam LLC? None of them OMR 82,000 OMR 80,000 OMR 92,000

Eurofoam LLC issued 8,000 shares of OMR 10 each in order to procure a patent of latest technology developed by Oxfom LLC. The original cost of patent was OMR 82,000. The market values of the shares issued by Eurofoam LLC stood OMR 11.5 each. What shall be the value of patent in the books of Eurofoam LLC? None of them OMR 82,000 OMR 80,000 OMR 92,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A corporation issues 500 shares of P50 par ordinary share capital for store equipment. The market value of the store equipment is P35,000 and the market value of the stock is P55 per share. What amount should be charged to the store equipment?
18.On August 20X1, ABC Company bought 10,000 shares of Z Corp at P120,000. Commission and taxes related to the acquisition were P5,000. On Dec 31, 20X1 Z Corp's share had a fair value of P14 per share. On Jan 4, 20X2 half of the shares were sold at P15 per share. Transaction costs related to the sale were P3,500. ABC Company's investment model is to hold collect and sell.How much is the gain (loss) on sale at Jan 20X2? 15,000 11,500 5,000 1,500
Problem 11. On May 5, 2019, MacDougal Corp. exchanged 2,000 shares of its P25 par value ordinary treasury shares for a patent owned by Masset Co. The treasury shares were acquired in 2018 for P45,000. At May 5, 2019, MacDougal's ordinary shares was quoted at P38 per share, and the patent had a carrying value of P68,000 on Masset's books. MacDougal should record the patent at what amount?
Company has issued shares of 40000 shares of face value 0.500 each to buy a copyright. The original cost of copyright is 30000 and the market value of such shares issued are 1.000 each. Identify the cost at which copyright will be recognized as per IAS 38: a. 20000 b. 40000 c. 30000
On Jan 1, 20X1, Ouyang Inc paid $1,000,000 to acquire 70% of Huang Inc when Huang's BV was $500,000. And the 30% of non-controlling interest(NCI)'s fair value was $300,000. At the acquisition date, Huang's equipment was understated by $50,000 with a 5 vear remaining life; Patents was underreported by 60,000 with a 6 year remaining life; trademarks was overvalued by $10,000 with a remaining life of 5 years. Three years later, Huang Inc reports the following information. Ouyang Inc Huang Inc Current assets Equipment Trademarks $300,000 $320,000 250,000 150,000 210,000 140,000 200,000 280,000 100,000 320,000 Patents 150,000 Liabilities Revenues Expenses 340,000 450,000 180,000 What is the consolidated balance of trademarks today?
2. On January 1, 2019, AB Company exchanges 10,000 shares of its common stock for all of the net assets of CD, Inc. Each of the NT's shares has a $5 par value and a $40 fair value. AB also paid $35,000 as direct out- of-pocket costs. Several of CD’s accounts have fair values that differ from their book values on this date: Book Values Fair Values $ 85,000 65,000 100,000 $ 83,000 125,000 180,000 160,000 45,000 Receivables Trademarks Furniture and Fixture Research and development Notes payable -0- 40,000 Precombination January 1, 2019, book values for the two companies are as follows: AB CD 9,000 85,000 65,000 100,000 105,000 $ 364,000 Cash $ 50,000 120,000 300,000 640,000 $ Receivables Trademarks Furniture and Fixture Equpiment (net) 320,000 Totals $ 1,430,000 Accounts Payable Notes Payable Common stock Additional paid-in capital Retained earnings 2$ 100,000 $ 34,000 60,000 50,000 30,000 190,000 $ 364,000 270,000 400,000 30,000 630,000 $ 1,430,000 Totals Assume that this combination is…
99
8.On August 20X1, ABC Company bought 10,000 shares of Z Corp at P120,000. Commission and taxes related to the acquisition were P5,000. On Dec 31, 20X1 Z Corp's share had a fair value of P14 per share. Half of the shares were sold at P15 per share. Transaction costs related to the sale were P3,500. ABC Company's investment model is to hold collect and sell.How much is the unrealized gain (loss) at FV change on Dec 31, 20X1? 20,000 15,000 10,000 0
Desert Company purchased land by exchanging 25,000 shares of the company's common stock that had a $10 par value. The land was recently appraised for $250,000. Desert's stock is not actively traded on the NYSE but last year a shareholder sold a block of 250 shares at a selling price of $20 per share. What is the original cost of the Land that will be recorded by Desert, Co., on their Balance Sheet?
ABC Company is in financial difficulties and agreed to issue 20,000 of its P20 par value shares in settlement of its loan from a bank of P1,000,000. On this date, the accrued interest not yet paid by ABC Company amounted to P120,000. The fair market value of the shares on this date is P40 per share while the fair market value of the liability is P1,200,000. According to our standards, what amount of gain or loss from extinguishment of debt shall be recognized from this equity swap?
Black Bulls Corp. Issued 10,000 shares of its P10 par value shares for a building. The building has a fair value of P500,000 and a book value of P400,000. Black Bulls’ ordinary share is currently selling for P45 per share. Black Bulls Corporation should record the building at a) P100,000 b) P450,000 c) P500,000 d) P400,000
EG Corporation redeemed 200 shares of stock from one of its shareholders in exchange for $210,000. The redemption represented 20% of the corporation’s outstanding stock. The redemption was treated as an exchange by the shareholder. EG’s total E&P at the time of the distribution was $2,000,000. By what amount does EG reduce its total E&P as a result of the redemption? EG Corporation redeemed 200 shares of stock from one of its shareholders in exchange for $210,000. The redemption represented 20% of the corporation’s outstanding stock. The redemption was treated as an exchange by the shareholder. EG’s total E&P at the time of the distribution was $600,000. By what amount does EG reduce its total E&P as a result of the redemption?