ny owns a patent for which it paid $75 million. At the end of 2024, it had accumulated amortization on the patent of $15 million. Due to adverse economic conditions, the company's management determined that it should assess whet

Q: On January 1, 2021, The Donut Stop purchased a patent for $84,000. At that time, the remaining legal…

A: Intangible assets are the assets that does have a physical existence. Patents, copyrights, and…

Q: Adam, Inc. purchased equipment in 2021 at a cost of $600,000. Two years later it became apparent to…

A: Impairment loss refers to the reduction in the value of an asset on a company's balance sheet when…

Q: Mark Inc. incurred P816,000 of research and development costs in its laboratory to develop a patent…

A: As per IAS 38 Intangible Assets, the cost incurred for research and development is to be expensed to…

Q: During 2017, Lyle company incurred P400,000 of research and development costs in its laboratory to…

A: Above mentioned patent meets the recognition criteria of intangible assets , it is a self generated…

Q: Ford Corporation estimates the fair value of its trademark is estimated to be $560,000. The current…

A: The time period trademark refers to a recognizable insignia, phrase, word, or image that denotes a…

Q: Crane Manufacturing Company acquired a patent on a manufacturing process on January 1, 2020 for…

A: Patent  cost of acquisition  = $5,550,000Given  that useful life of Patient  = 10 years Hence…

Q: On January 1, 2021, Bambi Ltd. purchased equipment for $728,000. The equipment was assumed to have…

A: When an asset's net carrying amount which is its acquisition cost less depreciation drops and…

Q: On January 1, 2024, Weaver Corporation purchased a patent for $237,000. The remaining legal life is…

A: Financial statement:The financial statement is the statement or the record that is prepared by the…

Q: Baguio Corp. incurred P350,000 of research and development costs to develop a product for whicha…

A: Patent A patent refers to the grant of an exclusive right for any kind of invention, product, or…

Q: Jung Inc. owns a patent for

A: Under US GAAP, if the carrying value (book value) is greater than undiscounted expected future cash…

Q: MG Corporation acquired a patent for a new product for $260,000 on 2 January 2013 with a useful life…

A: Solution: Annual amortization expense on Patent = Cost of patent / Estimated useful life =  $260,000…

Q: On 30 June 2019, TIE Ltd acquired a machire for $180 000 cash, with an expected useful life of 9…

A:

Q: In 2015, Bambung Corporation acquired production machinery at a cost of £416,000, which now has a…

A: The objective of the question is to calculate the amount of loss on impairment that Bambung…

Q: Crane Corporation owns machinery with a book value of $574000. At fiscal year-end 2026, is estimated…

A: Lets understand the basics.When recoverable amount of an asset is less than the book value of asset…

Q: Splish Company uses special strapping equipment in its packaging business. The equipment was…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: The airport land rights were given to ABC Airlines on June. 30, 2020. On that date, the rights were…

A: Fair value refers to the assets worth currently assets carrying and at which the asset can be sold…

Q: After first recording any impairment losses on plant and equipment and the patent. Required: 1.…

A: The financial indicator known as book value, commonly referred to as shareholder's equity, shows the…

Q: In early January 2024, Bramble Corporation applied for a trade name, incurring legal costs of…

A: Amortization is calculated by dividing the value of intangible assets by its useful life. It is…

Q: During 2021, Ayayai Company incurred $2100000 of research and development costs in to develop a new…

A: Intangible assets are those assets which can not be seen or felt. These assets can only be used for…

Q: ill Company acquired a patent on an oil fe and no residual value. Sandhill uses st ted from the…

A: A patent gives the holder the authority to sue anybody who makes, uses, imports, or sells the…

Q: Crane Company uses special strapping equipment in its packaging business. The equipment was…

A: Depreciation as per straight line method = (cost - residual value) /usefullife

Q: Ltd. purchased a patent for $450,000 on September 1, 2020. It had a useful life of 10 years. On…

A: Answer : Particular   Amount $ Patent cost   $450,000 Less : Amortization expenses for 2020…

Q: Red Co. has a patent on a communication process. The company has amortized the patent on a…

A:

Q: B on 6/30/2021 for $660,000. The useful life of the patent is estimated to be six years. On…

A: Given that Fair market value = $250,000 Carrying value = $275,000

Q: Kjekk Company purchased a patent for $180,000 on May 1, 2017. The patent had a remaining legal life…

A: Given that, Cost of purchase of patent = $180000 Remaining useful life of patient = 10 years

Q: At the end of 2023, Blue Spruce Corporation owns a licence with a carrying amount of $505,000. Blue…

A: According to the Accounting Standards for Private Enterprises (ASPE), an asset is considered…

Q: An equipment of KAY Corporation was tested for impairment on December 31, 2019. The carrying value…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that…

A: Amortization expense: A charge created on intangible asset for its use over the life of asset. It is…

Q: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…

A: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…

Q: Hello Corporation purchased a patent for $90,000 on September 1, 2020. It had a useful life of 10…

A: Answer :ParticularAmount $Patent cost$90,000Less : Amortization expenses for…

Q: At 1 July 2020, Flamingo Ltd acquired computer equipment at a cost of $900,000. The expected useful…

A: Depreciation expense for the period 1 July 2020 to 30 June 2021 = $900,000 - 05 years = $180,000…

Q: On January 1, 2008, Ryan Company purchased a patent for P7,140,000. The patent is being amortized…

A: Patents are intangible assets and these are to be amortised over the life of useful period. They are…

Q: At the end of 2023, Blue Spruce Corporation owns a licence with a carrying amount of $505,000. Blue…

A: According to the Accounting Standards for Private Enterprises (ASPE), an asset is considered…

Q: In 2018, Batman Company ( an IFRS reporter) acquired equipment at a cost of $620,000. The balance of…

A: As per IAS 36 Impairment of assets Recoverable amount is greater of  1.Fair value less cost to sell…

Q: Sunland Inc. is a private corporation following ASPE. On January 2, 2022 it purchased a limited-life…

A: Here's how we can calculate it:Calculate Straight-Line Amortization:Purchase price = $50,600Useful…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.