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P2-5. The balance sheet of Valentine Company is presented below: 2020 Assets Cash Trade receivables Equipment Intangible assets Total assets P 350,000 800,000 1,250,000 500,000 P2,550,000 Liabilities and Shareholders' Equity Accounts payable Short-term notes payable Ordinary shares Retained earnings Total liabilities and shareholders' equity 200,000 200,000 2,000,000 150,000 P2,550,000 The intangible assets - a patent to a new auditory technology - is self- developed three years ago. An investor is looking at buying the company and Valentine Company would like to give an initial quotation. Since the technology is unique and does not have any comparables, the software development team quoted that the cost of reproducing the intangible assets is at 120% of its net asset cost. Compute for the following: 1. Book value of Valentine Company 2. Reproduction cost of intangible assets 3. Reproduction value of Valentine Company

P2-5. The balance sheet of Valentine Company is presented below: 2020 Assets Cash Trade receivables Equipment Intangible assets Total assets P 350,000 800,000 1,250,000 500,000 P2,550,000 Liabilities and Shareholders' Equity Accounts payable Short-term notes payable Ordinary shares Retained earnings Total liabilities and shareholders' equity 200,000 200,000 2,000,000 150,000 P2,550,000 The intangible assets - a patent to a new auditory technology - is self- developed three years ago. An investor is looking at buying the company and Valentine Company would like to give an initial quotation. Since the technology is unique and does not have any comparables, the software development team quoted that the cost of reproducing the intangible assets is at 120% of its net asset cost. Compute for the following: 1. Book value of Valentine Company 2. Reproduction cost of intangible assets 3. Reproduction value of Valentine Company

FINANCIAL ACCOUNTING
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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P2-5. The balance sheet of Valentine Company is presented below: 2020 Assets Cash Trade receivables Equipment Intangible assets Total assets P 350,000 800,000 1,250,000 500,000 P2,550,000 Liabilities and Shareholders' Equity Accounts payable Short-term notes payable Ordinary shares Retained earnings Total liabilities and shareholders' equity 200,000 200,000 2,000,000 150,000 P2,550,000 The intangible assets - a patent to a new auditory technology - is self- developed three years ago. An investor is looking at buying the company and Valentine Company would like to give an initial quotation. Since the technology is unique and does not have any comparables, the software development team quoted that the cost of reproducing the intangible assets is at 120% of its net asset cost. Compute for the following: 1. Book value of Valentine Company 2. Reproduction cost of intangible assets 3. Reproduction value of Valentine Company
Transcribed Image Text:P2-5. The balance sheet of Valentine Company is presented below: 2020 Assets Cash Trade receivables Equipment Intangible assets Total assets P 350,000 800,000 1,250,000 500,000 P2,550,000 Liabilities and Shareholders' Equity Accounts payable Short-term notes payable Ordinary shares Retained earnings Total liabilities and shareholders' equity 200,000 200,000 2,000,000 150,000 P2,550,000 The intangible assets - a patent to a new auditory technology - is self- developed three years ago. An investor is looking at buying the company and Valentine Company would like to give an initial quotation. Since the technology is unique and does not have any comparables, the software development team quoted that the cost of reproducing the intangible assets is at 120% of its net asset cost. Compute for the following: 1. Book value of Valentine Company 2. Reproduction cost of intangible assets 3. Reproduction value of Valentine Company
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