The Department of Information and Communication Technology a. A patent was purchased from Patent Inc. for P4,000,000 on January 1, 2019. the agency estimates the remaining useful life of the patent to be 10 years. the patent was carried in Patent Inc.'s accounting records at a net book value of P4,000,000 when Patent Inc. sold it to DICT. b. On January 1, 2020, a computer software was purchased from Software Inc. for P960,000. The agency uses 10-year useful life for computer software. c. the following research and development costs were incurred by DICT in 2020: Materials and equipment Personnel Indirect costs Total 284.000 378,000 204,000 866,000 DICT estimates that these costs will be recouped by December 31, 2023. The materials and equipment purchased have no alternative uses. d. On January 1, 2020, because of recent events in the field, DICT estimates that the remaining life of the patent purchased on January 1, 2019 is only 5 years from January 1, 2020. e. In July 1, 2020, several computer software were purchased through non-exchange transactions at fair value of P500,000. The computer software has no finite useful life as determined by the agency. What is the carrying amount of computer software assessed as having an indefinite useful life?
The Department of Information and Communication Technology a. A patent was purchased from Patent Inc. for P4,000,000 on January 1, 2019. the agency estimates the remaining useful life of the patent to be 10 years. the patent was carried in Patent Inc.'s accounting records at a net book value of P4,000,000 when Patent Inc. sold it to DICT. b. On January 1, 2020, a computer software was purchased from Software Inc. for P960,000. The agency uses 10-year useful life for computer software. c. the following research and development costs were incurred by DICT in 2020: Materials and equipment Personnel Indirect costs Total 284.000 378,000 204,000 866,000 DICT estimates that these costs will be recouped by December 31, 2023. The materials and equipment purchased have no alternative uses. d. On January 1, 2020, because of recent events in the field, DICT estimates that the remaining life of the patent purchased on January 1, 2019 is only 5 years from January 1, 2020. e. In July 1, 2020, several computer software were purchased through non-exchange transactions at fair value of P500,000. The computer software has no finite useful life as determined by the agency. What is the carrying amount of computer software assessed as having an indefinite useful life?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The Department of Information and Communication Technology
a. A patent was purchased from Patent Inc. for P4,000,000 on January 1, 2019. the agency estimates the remaining useful life of the patent to be 10 years.
the patent was carried in Patent Inc.'s accounting records at a net book value of P4,000,000 when Patent Inc. sold it to DICT.
b. On January 1, 2020, a computer software was purchased from Software Inc. for P960,000. The agency uses 10-year useful life for computer software.
c. the following research and development costs were incurred by DICT in 2020:
Materials and equipment
Personnel
Indirect costs
Total
284.000
378,000
204,000
866,000
DICT estimates that these costs will be recouped by December 31, 2023. The materials and equipment purchased have no alternative uses.
d. On January 1, 2020, because of recent events in the field, DICT estimates that the remaining life of the patent purchased on January 1, 2019 is only 5 years
from January 1, 2020.
e. In July 1, 2020, several computer software were purchased through non-exchange transactions at fair value of P500,000. The computer software has no
finite useful life as determined by the agency.
What is the carrying amount of computer software assessed as having an indefinite useful life?
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