French Vanilla Company commenced operations in the current year. A number of expenditures were made during the current year that were debited to one account Intangible asset. Incorporation fees and legal costs related to organizing the incorporation for P150,000 Fire Insurance premium for three-year period for 60,000 Legal fees for filing a patent on a new product resulting from an A&B project for 50,000 Purchase of copyright for 300,000 Legal fees for successful defense of the patent developed from the project for 50,000 Entered into a 10-year franchise agreement with a franchisor for 600,000 Advertising cost for 50,000 Purchase of all the outstanding ordinary shares of an acquire. On the date of purchase, the acquire had fair value of total assets, P6,000,000 and total liabilities of P2,200,000. for 5,000,00 What amount should be reported as intangible asset?
French Vanilla Company commenced operations in the current year. A number of expenditures were made during the current year that were debited to one account Intangible asset. Incorporation fees and legal costs related to organizing the incorporation for P150,000 Fire Insurance premium for three-year period for 60,000 Legal fees for filing a patent on a new product resulting from an A&B project for 50,000 Purchase of copyright for 300,000 Legal fees for successful defense of the patent developed from the project for 50,000 Entered into a 10-year franchise agreement with a franchisor for 600,000 Advertising cost for 50,000 Purchase of all the outstanding ordinary shares of an acquire. On the date of purchase, the acquire had fair value of total assets, P6,000,000 and total liabilities of P2,200,000. for 5,000,00 What amount should be reported as intangible asset?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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French Vanilla Company commenced operations in the current year. A number of expenditures were made during the current year that were debited to one account Intangible asset.
Incorporation fees and legal costs related to organizing the incorporation for P150,000
Fire Insurance premium for three-year period for 60,000
Legal fees for filing a patent on a new product resulting from an A&B project for 50,000
Purchase of copyright for 300,000
Legal fees for successful defense of the patent developed from the project for 50,000
Entered into a 10-year franchise agreement with a franchisor for 600,000
Advertising cost for 50,000
Purchase of all the outstanding ordinary shares of an acquire. On the
date of purchase, the acquire had fair value of total assets, P6,000,000
and total liabilities of P2,200,000. for 5,000,00
What amount should be reported as intangible asset?
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