The following costs are incurred by II Corporation: Goodwill purchased in a business combination P500,000 Cost of developing website for the promotion and advertisement of the entity’s products and services 150,000 Cost incurred in the corporation’s formation and organization 230,000 Operating losses incurred in the start-up of the business 130,000 Initial franchise fees paid 175,000 Continuing franchise fees 50,000 Internally generated goodwill 800,000 Acquisition price of a copyright 530,000 Cost of purchasing a patent from an inventor 137,000 Cost of leasehold improvement 70,000 Legal costs incurred in successfully defending a patent 55,500 Internally generated customer list 40,000 Total par value of 10,000 shares issued for a customer’s list purchased (P85 fair value) 700,000 Cost of purchasing a trademark 250,000 Computer software for a computer-controlled machine that cannot operate without that specific software 325,500 How much from the above items can be recognized as intangible assets including goodwill?
The following costs are incurred by II Corporation:
|
|
P500,000 |
|
Cost of developing website for the promotion and advertisement of the entity’s products and services |
150,000 |
|
Cost incurred in the corporation’s formation and organization |
230,000 |
|
Operating losses incurred in the start-up of the business |
130,000 |
|
Initial franchise fees paid |
175,000 |
|
Continuing franchise fees |
50,000 |
|
Internally generated goodwill |
800,000 |
|
Acquisition price of a copyright |
530,000 |
|
Cost of purchasing a patent from an inventor |
137,000 |
|
Cost of leasehold improvement |
70,000 |
|
Legal costs incurred in successfully defending a patent |
55,500 |
|
Internally generated customer list |
40,000 |
|
Total par value of 10,000 shares issued for a customer’s list purchased (P85 fair value) |
700,000 |
|
Cost of purchasing a trademark |
250,000 |
|
Computer software for a computer-controlled machine that cannot operate without that specific software |
325,500 |
How much from the above items can be recognized as intangible assets including goodwill?
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