e amortizationIntangible Assets457PROBLEM 3: EXERCISES1. Big Publisher Co. has a publishing contract with Mr. JuanLapis. An intangible asset for the publishing title is recognizedon the contract. The carrying amount is P4,400,000. BiggerPublisher Co. has a similar publishing contract with Ms. JaneBallpen. The carrying amount is P4,200,000. Big traded thepublishing title with Lapis to Bigger for that of Ballpen. Thefair value of each contract was P4,500,000.Requirement: Provide the entries in each of Big and Bigger's booksunder each of the following scenarios:a.The exchange transaction lacks commercial substance.b. The exchange transaction has commercial substance.(Adapted)2. Coffee Co. incurred P5,000,000 on a self-created computersoftware, P2,100,000 of which was incurred after technologicalfeasibility was established. The software is expected to have a3-year economic life and generate future revenues ofP35,000,000. The revenue generated by the software during theyear amounted to P10,000,000.Requirement: Provide the entry to record the amortization expenseyear using the principles set forth under PAS 38.for the3. Barako Co. developed a trademark to distinguish its productsfrom those of its competitors. Through advertising and othermeans, the company is seeking to establish significant productidentification to increase future sales. The similarity betweenthe trademark costs and other intangible and operating costshas caused some confusion over proper accounting. Thefollowing items are being treated as part of the cost of the

Name: e amortizationIntangible Assets457PROBLEM 3: EXERCISES1. Big Publishe
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: e amortizationIntangible Assets457PROBLEM 3: EXERCISES1. Big Publisher Co. has a publishing contract with Mr. JuanLapis. An intangible asset for the publishing title is recognizedon the contract. The carrying amount is P4,400,000. BiggerPublisher Co

Comment - We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Business

Accounting

PROBLEM 3: 1. Big Publisher Co. has a publishing contract with Mr. Juan Lapis. An intangible asset for the publishing title is recognized on the contract. The carrying amount is P4,400,000. Bigger Publisher Co. has a similar publishing contract with Ms. Jane Ballpen. The carrying amount is P4,200,000. Big traded the

PROBLEM 3: 1. Big Publisher Co. has a publishing contract with Mr. Juan Lapis. An intangible asset for the publishing title is recognized on the contract. The carrying amount is P4,400,000. Bigger Publisher Co. has a similar publishing contract with Ms. Jane Ballpen. The carrying amount is P4,200,000. Big traded the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The president of ACCO 202 Corporation donated a building to Ana G. Méndez Corporation. The building had an original cost of $200,000, a book value of $75,000, and a fair market value of $180,000. To record this donation, Ana G. Méndez would a. Make a memorandum entry b. Debit Building for $75,000 and credit Gain for $75,000 c. Debit Building for $200,000 and credit Gain for $200,000 d. Debit Building for $180,000 and credit Gain for $180,000
Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract of land being held for development, but each company would prefer to build on the other's land. Accordingly, they agree to exchange their land, and have the following information: Harglo's Kalman's Land Land Cost and book value $150,000 $100,000Fair value based upon appraisal $200,000 $160,000 The exchange of land was made, and, based on the difference in appraised fair value, Kalman paid $40,000 cash to Harglo. For financial reporting purposes, Harglo would recognize a gain on this exchange in the amount of $6,000 After the exchange, Harglo would record its newly acquired land on its books ata. $120,000b. $102,000c. $136,000d. $166,000
Rizzo's Delivery Company and Overland's Express Delivery exchanged delivery trucks on January 1, 2022. Rizzo's truck cost $22,000. It has accumulated depreciation of $15,000 and a fair value of $3,000. Overland's truck cost $10,000. It has accumulated depreciation of $8,000 and a fair value of $3,000. The transaction has commercial substance. (a) Journalize the exchange for Rizzo's Delivery Company. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Include in your journal entry separate account entries for both the new and old equipment.) Account Titles and Explanation Debit Credit
Exercise 13-29 (Algorithmic) (10.3) Sebastian purchases two pieces of equipment for $147,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $102,900 and that of the second piece of equipment is $161,700. What is Sebastian's basis in these two assets? If required, round your interim calculations to two decimal places. Use rounded amounts in subsequent computations. If required, round final answers to the nearest dollar. Sebastian's basis for the first piece of equipment is X and I X for the second piece of equipment.
Case 3: DREXLER CORPORATION Information concerning Drexler Corporation's intangible assets is as follows: 1. On January 1, 20x4, Drexler signed an agreement to operate as a franchisee of Houston Copy Service, Inc., for an initial franchise fee of P255,000. Of this amount, P75,000 was paid when the agreement was signed, and the balance is payable in four (4) annual payments of P45,000 each beginning January 1, 20x5. The agreement provides that the down payment is not refundable, and no future services are required of the franchisor. The implicit rate for a loan of this type is 14%. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Drexler's revenue from the franchise for 20x4 was P2,700,000. Drexler estimates the useful life of the franchise to be 10 years. 2. Drexler incurred P234,000 of experimental and development costs in its laboratory to develop a patent which was granted on January 2, 20x4. Legal fees and other costs…
am. 117.
please show work how its solved thanks.