Katana Company purchased a patent on January 1, 2014 for P6,000,000. The original life was estimated to be 15years.However, in December 2019, Iceberg's controller received information proving conclusively that the productprotected by the Katana patent would be obsolete within five years.Accordingly, the entity decided to write off the unamortized cost of the patent over five years beginning in 2019.5. How much would be the patent amortization for the year 2019?a. 1,200,000b. 1,000,000c. 800,000d. 400,000IAS 36Breathless Company acquired equipment on January 1, 2018 for P5,000,000. The equipment had a 10-yearuseful life and no residual value. On December 31, 2019, the following information was obtained:Expected value of undiscounted cash flowsFair value estimated with in-use premise3,600,0003,700,000Fair value estimated with in-exchange premise3,500,0006. What amount should be recognized as impairment loss for 2019?a. 300,000b. 400,000c. 500,000d.Silver Company operates a production line which is treated as a cash generating unit for impairment reviewpurposes. At year-end, the carrying amounts of the noncurrent assets are as follows:1,100,000GoodwillMachinery2,200,000The value in use of the production line is estimated at P2,700,000 at this time.7. What is the revised carrying amount of goodwill after recognition of impairment?a. 1,100,000b. 900,000800,000500,000c.d.8. What is the revised carrying amount of machinery after recognition of impairment?a. 2,200,000b. 1,800,000c. 1,600,000d. 1,900,000

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Katana Company purchased a patent on January 1, 2014 for P6,000,000. The original life was estimated to be 15 years. However, in December 2019, Iceberg's controller received information proving conclusively that the product protected by the Katana patent would be obsolete within five years. Accordingly, the entity decided to write off the unamortized cost of the patent over five years beginning in 2019. 5. How much would be the patent amortization for the year 2019? a. 1,200,000 b. 1,000,000 c. 800,000 d. 400,000

Katana Company purchased a patent on January 1, 2014 for P6,000,000. The original life was estimated to be 15 years. However, in December 2019, Iceberg's controller received information proving conclusively that the product protected by the Katana patent would be obsolete within five years. Accordingly, the entity decided to write off the unamortized cost of the patent over five years beginning in 2019. 5. How much would be the patent amortization for the year 2019? a. 1,200,000 b. 1,000,000 c. 800,000 d. 400,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 8P: At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the...

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