Rover Company purchases copyrights for P200,000 and incurs professional legal fees amounting to P20,000 related to the purchase made. After the purchase, Rover Company incurred operating expenses of P60,000. The estimated economic life is 40 years. What is the initial cost of copyright to be recorded in the books of Rover Company? P200,000 P180,000 P220,000 P280,000

Rover Company purchases copyrights for P200,000 and incurs professional legal fees amounting to P20,000 related to the purchase made. After the purchase, Rover Company incurred operating expenses of P60,000. The estimated economic life is 40 years. What is the initial cost of copyright to be recorded in the books of Rover Company? P200,000 P180,000 P220,000 P280,000

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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Steele Corp. purchases equipment for $20,000. Regarding the purchase, Steele recorded the following transactions: • Paid shipping of $900. • Paid installation fees of $1,800. • Pays annual maintenance cost of $280. • Received a 5% discount on $20,000 sales price. Determine the acquisition cost of the equipment.
On Jan 1, 20X1, ABC Corp purchased a patent for P90,000. At the time of purchase the patent was valid for 15 years, however the patent's useful life was estimated to be only ten years due to the competitive nature of the product. How much is the amortization of patent at Dec 31, 20X1?
Steele Corp. purchases equipment for $20,000. Regarding the purchase, Steele recorded the following transactions: • Paid shipping of $800. • Paid installation fees of $1,600. Pays annual maintenance cost of $240. • Received a 5% discount on $20,000 sales price. Determine the acquisition cost of the equipment.
Joseph Company purchased equipment on Jan. 1, 2025 for P800,000. The company spent P30,000 for its freight and P50,000 for taxes and other expenses incidental to acquisition. The equipment can be sold for P40,000 after 10 years. It is estimated to produce 336,000 units of product X. The equipment production of product X for the first 5 years follow: Year Units of product X 2025 36,000 2026 34,500 2027 32,500 2028 31,000 2029 28,500 How much is the depreciation Expense for the year 2027 using straight-line method?
On 1 July 2016 Liala Ltd sold an item of plant to Jordan Ltd for $350000 when its’ carrying value in Liala Ltd book was $500000 (costs $850000, accumulated depreciation $350000). This plant has a remaining useful life of five (5)years form the date of sale. The group measures its property plants and equipment using a costs model. Tax rate is 40 percent.Required:Pass the necessary entries on 30 June 2017 and 30 June 2018 to eliminate the intra-group transfer of equipment.
Company purchases a buiding for S100.000, t pays another $5.000 in dosing costs wh the purchase. Later in the year upon placing the bulding into une. Company pays S500 to have the bulding ceaned Finaly, near the end of the year Company pays S25.000 for a physical adtion to the building Ignoring any depreciation what would the value of the Tding account be at the end of he year on the balance sheer? $125.000 $130.000 $130.500 0.000
Bennet Company purchased a patent from Arnold Company on January 1, 2021 for $450,000. Arnold Company had used the patent for five years prior to selling it to Bennet Company. Assuming Bennet Company plans to use the patent for its full useful life, what amount of amortization expense would Bennet Company record on its 2021 income statement? O $30,000 O $25,000 O $22,500 $37,500 O There is not enough information to answer the question.
Belmont Publishing Company purchased the copyright to a basic computer textbook for $80,000. The usual life of a textbook is about four years. However, the copyright will remain in effect for another 50 years. Calculate the annual amortization of the copyright.
A3
New York Theater purchased the copyright of a famous play for $42,000. The remaining legal life of the copyright was 62 years, but the estimated useful life was 15 years. If the New York Theater uses straight-line amortization, how much of the cost of the copyright should they amortize each year? $2,800 $900 $1,738 $677