MC47 On January 1, 2019, RMP Innovations, Inc. had capitalized cost ofP2,500,000 for a new computer software product with an economiclife of 5 years.expected that sales of software during its five year economic lifewould total P5,000,000. The expected sales in the remaining fourSales for 2019 amounted to P1,500,000.It is years are:2020P1,200,0003;2021 - P1,000,000; 2022 -P900,000; and 2023 - P400,000On December 31, 2019, the software had fair value less cost to sellof P2,250,00o.How much is the computer software amortization expense for theyear ended December 31, 2019?P750,000P500,000P250,000P225,000a.b.с.d.

As per accounting statement assets shall be valued at lower of cost or realizable value ( sales…

Answered: MC47 On January 1, P2,500,000 for life…

Business

Accounting

MC47 On January 1, P2,500,000 for life of 5 years. expected that s. would total P5,0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

MC47 On January 1, 2019, RMP Innovations, Inc. had capitalized cost of
P2,500,000 for a new computer software product with an economic
life of 5 years.
expected that sales of software during its five year economic life
would total P5,000,000. The expected sales in the remaining four
Sales for 2019 amounted to P1,500,000.
It is

years are:
2020
P1,200,0003;
2021 - P1,000,000; 2022 -
P900,000; and 2023 - P400,000
On December 31, 2019, the software had fair value less cost to sell
of P2,250,00o.
How much is the computer software amortization expense for the
year ended December 31, 2019?
P750,000
P500,000
P250,000
P225,000
a.
b.
с.
d.

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