On January 1, 2021, Ebasan reported patent cost of P1,920,000 and related accumulated amortization ofP240,000. The patent was purchased on January 1, 2019 at which date the remaining legal life was 16 years.On January 1, 2021, the useful life of the patent was determined to be only & years from the date ofacquisition.On January 1, 2021, Ebasan paid P800,000, of which three-fourths was for a trademark and one-fourth was forthe other entity's agreement not to compete for a 5-year period in the line of business covered by thetrademark. The entity considered the life of the trademark indefinite.Moreover, the entity agreed to pay P50,000 to the other entity as consulting fee each year for 5 years payableevery January 1. What is the total carrying amount of intangible assets on December 31, 2021?

Assets are resources that are controlled which results from prior transactions that are expected to…

Answered: On January 1, 2021

Business

Accounting

On January 1, 2021

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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Queation 18 Crane Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020. January 1, 2020 December 31, 2020 Projected benefit obligation $1,499,000 $1,527,000 Market-related and fair value of plan assets 802,000 1,127,200 Accumulated benefit obligation 1,622,000 1,742,500 Accumulated OCI (G/L)—Net gain 0 (199,900 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2020 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2020. Assume no benefits paid in…
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Answer part C only The following information was obtained from the financial statements of X Inc. Defined Benefit Plan Obligations Pension Benefits 2020……………………..2019 Defined Benefit Obligation(DBO): Balance, beginning of year…………………………………………$40,032…………………..42,370 Current Service Cost…………………………………………………… 864…………………. 1,126 Interest Cost…………………………………………………………… 2,344…………………... 2,255 Benefits Paid……………………………………………………………(3,198)………………….. (2,881) Actuarial Gains………………………………………………………... (3,339)………………….. (2,838) Balance, end of year………………………………………………….$36,703……………….….$40,032 Defined Benefit Plan Assets Pension Benefits 2020…………..…………2019 Balance, beginning of year…………………………………………$75,891………………….$90,828 Expected return on Plan Assets……………………………………. 5,599………………….. 6,723 Employee…
The phase out amount changed from 400... to 150000 in 2021 for married filing jointly
A client turned age 72 on October 1, 2021 and must receive a minimum distribution from his IRA account, which had a value (at the end of the prior year) of $48,000. His spouse, age 63, is the beneficiary of the IRA account. The life expectancy according to IRS tables for ages 72 and 73 use the factors of 25.6 and 24.7 respectively. If the client takes a $1,000 distribution by April 1, 2022 what will be the tax penalty, if any, on the first RMD? $0 $376.00 $437.50 $416.00
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Defined Benefit Pension Plan Skywalker Inc. is a publicly traded company that follows IFRS. On November 30, 2019, Skywalker's accounting records included the following information: Defined benefit obligation $ 1,408,599 Pension plan assets $ 1,531,086 Skywalker's actuary provided the following information about its defined benefit pension plan for the year ended November 30, 2020: Current year service cost $ 84,516 Prior service cost, granted December 1, 2019 $ 169,032 Employer contributions for the year $ 91,865 Benefits paid to retirees $ 28,172 Expected return on assets 6% Actual return on assets 7% Discount rate 6% Defined benefit obligation at November 30, 2020 $ 1,725,036 Required: a) Prepare a pension worksheet for Skywalker's pension plan for the year ended November 30, 2020. b) Prepare the journal…
10. Newton Inc offers its employees a defined benefit pension plan. Newton Inc reports under US GAAP. It records actuarial gains and losses in Other Comprehensive Income (OCI) and amortizes these amounts over the average remaining service life of its employees when they exceed a threshold. Newton Inc did not record any past service cost in fiscal year 2021. Below you can find excerpts from Newton's pension footnotes: 4+1 f Service cost Interest cost Expected return on plan assets Actual return on plan assets Contributions to defined benefits plan Benefits paid Pension liability Accumulated OCI losses related to defined benefit plans a. £6,950 b. £6,600 c. £6,250 d. £8,150 e. None of the above 2020 £3,300 £1,600 £2,100 £1,900 £2,000 £1,250 What is your best approximation of the net pension expenses recorded in P&L related to defined benefit plans in fiscal year 2021? ANSWER: C £35,000 £4,500 2021 £3,500 £1,750 £1,900 £2,000 £2,100 £1,350 £42,500 £5,100
Current Attempt in Progress Cullumber Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2025, the following balances relate to this plan. Plan assets Projected benefit obligation Pension asset/liability Accumulated OCI (PSC) $465,800 604,200 138,400 95,000 Dr. As a result of the operation of the plan during 2025, the following additional data are provided by the actuary. (a) Service cost Settlement rate, 10% Actual return on plan assets Amortization of prior service cost Expected return on plan assets Unexpected loss from change in projected benefit obligation, due to change in actuarial predictions Contributions Benefits paid retirees $86,600 55,000 19,300 52,000 79,600 102,800 88,300 Using the data above, compute pension expense for Cullumber. for the year 2025 by preparing a pension worksheet. (Enter all amounts as positive)
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