The following information is available for K Company for the year ended 2021. It incurred organization costs of $45,200. • It purchased trademarks for $20,200. ● ● ● It incurred $31,200 for development phase activities that meets all the 6 criteria for development phase. It paid $8,100 to the advertising agency in advance for promoting goodwill of the company through ad campaign. It acquired equipment costing $151,400 for R&D projects. The equipment is having alternative future use. It made payment amounting to $12,900 for a favorable lease. The term of lease is 10 years. Determine the total amount for K to report as intangible assets on its statement of financial position on December 31, 2021. (Note: Assume K uses IFRS to prepare its financial statements.) A) $109,500 B) $179700 C) $100,800 D) $64,300

The following information is available for K Company for the year ended 2021. It incurred organization costs of $45,200. • It purchased trademarks for $20,200. ● ● ● It incurred $31,200 for development phase activities that meets all the 6 criteria for development phase. It paid $8,100 to the advertising agency in advance for promoting goodwill of the company through ad campaign. It acquired equipment costing $151,400 for R&D projects. The equipment is having alternative future use. It made payment amounting to $12,900 for a favorable lease. The term of lease is 10 years. Determine the total amount for K to report as intangible assets on its statement of financial position on December 31, 2021. (Note: Assume K uses IFRS to prepare its financial statements.) A) $109,500 B) $179700 C) $100,800 D) $64,300

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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Question

The following information is available for K Company for the year ended 2021.
It incurred organization costs of $45,200.
• It purchased trademarks for $20,200.
It incurred $31,200 for development phase activities that meets all the 6 criteria for
development phase.
It paid $8,100 to the advertising agency in advance for promoting goodwill of the company
through ad campaign.
•
It acquired equipment costing $151,400 for R&D projects. The equipment is having
alternative future use.
• It made payment amounting to $12,900 for a favorable lease. The term of lease is 10 years.
Determine the total amount for K to report as intangible assets on its statement of financial position
on December 31, 2021. (Note: Assume K uses IFRS to prepare its financial statements.)
A) $109,500
B) $179700
C) $100,800
D) $64,300

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