On Jan. 1, 2021, ABC Publishing House exchanged its copyright over a book for one over an artwork. The book copyright has a forecasted material cashflows over another twenty years. The artwork is forecasted to have material cashflows over the next 35 years although the remaining legal life is 24 years. The book copyright has a carrying value of P 4,000,000 while the artwork copyright has a fair value of P4,400,000. ABC additionally paid cash of P700,000 to the seller to settle the difference in valuation. How much is the carrying value of the new copyright as of Dec. 31, 2024?
On Jan. 1, 2021, ABC Publishing House exchanged its copyright over a book for one over an artwork. The book copyright has a forecasted material cashflows over another twenty years. The artwork is forecasted to have material cashflows over the next 35 years although the remaining legal life is 24 years. The book copyright has a carrying value of P 4,000,000 while the artwork copyright has a fair value of P4,400,000. ABC additionally paid cash of P700,000 to the seller to settle the difference in valuation. How much is the carrying value of the new copyright as of Dec. 31, 2024?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, 2021, ABC Publishing House exchanged its copyright over a book for one over an artwork. The book copyright has a forecasted material cashflows over another twenty years. The artwork is forecasted to have material cashflows over the next 35 years although the remaining legal life is 24 years. The book copyright has a carrying value of P 4,000,000 while the artwork copyright has a fair value of P4,400,000. ABC additionally paid cash of P700,000 to the seller to settle the difference in valuation.
How much is the carrying value of the new copyright as of Dec. 31, 2024?
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