PROBLEM 2: FOR CLASSROOM 1 On January 1, 20x1, Entity A registers a patent for a total registration and legal costs of P600,000. Entity A estimates that the patent has a remaining useful life of 25 years. How much is the carrying amount of the patent on December 31, 20x1? NOT FOR SALE! All rights belongs to respective aut Please consider buving the origina 422 PAS 38 a. 576,000 b. 570,000 c. 564,000 d. 580,000 2. Entity A incurred the following costs during 20x1: • Testing in search for, or evaluation of, product or process alternative • Adaptation of an existing capability to a particular requirement or customer's need • Design, construction, and testing of pre- production prototypes and models • Routine design of tools, jigs, molds, and dies 300,000 420,000 620,000 380,000 How much is the research and development expense in 20x1? a. 620,000 b. 920,000 c. 1,300,000 d. 1,340,000 3. If it is not clear whether an expenditure is a research or a development cost, it is treated as a (an) a. research cost. c. regular expense. d. ignored. b. development cost.

PROBLEM 2: FOR CLASSROOM 1 On January 1, 20x1, Entity A registers a patent for a total registration and legal costs of P600,000. Entity A estimates that the patent has a remaining useful life of 25 years. How much is the carrying amount of the patent on December 31, 20x1? NOT FOR SALE! All rights belongs to respective aut Please consider buving the origina 422 PAS 38 a. 576,000 b. 570,000 c. 564,000 d. 580,000 2. Entity A incurred the following costs during 20x1: • Testing in search for, or evaluation of, product or process alternative • Adaptation of an existing capability to a particular requirement or customer's need • Design, construction, and testing of pre- production prototypes and models • Routine design of tools, jigs, molds, and dies 300,000 420,000 620,000 380,000 How much is the research and development expense in 20x1? a. 620,000 b. 920,000 c. 1,300,000 d. 1,340,000 3. If it is not clear whether an expenditure is a research or a development cost, it is treated as a (an) a. research cost. c. regular expense. d. ignored. b. development cost.

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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Please answer, The questions are under IAS 38 Intangible Assets

PROBLEM 2: FOR CLASSROOM DISCUSSION
1. On January 1, 20x1, Entity A registers a patent for a total
registration and legal costs of P600,000. Entity A estimates that
the patent has a remaining useful life of 25 years. How much
is the carrying amount of the patent on December 31, 20x1?
NOT FOR SALE!
All rights belongs to respective auth
Please consider buving the oriainal
422
PAS 38
a. 576,000
c. 564,000
b. 570,000
d. 580,000
2. Entity A incurred the following costs during 20x1:
• Testing in search for, or evaluation of, product
or process alternative
• Adaptation of an existing capability to a
particular requirement or customer's need
• Design, construction, and testing of pre-
production prototypes and models
• Routine design of tools, jigs, molds, and dies
300,000
420,000
620,000
380,000
How much is the research and development expense in 20x1?
a. 620,000
b. 920,000
c. 1,300,000
d. 1,340,000
3. If it is not clear whether an expenditure is a research or a
development cost, it is treated as a (an)
a. research cost.
c. regular expense.
d. ignored.
b. development cost.

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