Reference no: EM132782799
Problem - Extracts from the financial records of ABC Inc. for the year ended 2019 are as follows:
Goodwill generated by the company due to an exceptional employee workforce Undeterminable
Advertising expenditure to generate goodwill for the company upon its start-up P30,000
Goodwill acquired in a business combination 200,000
Patent acquired from another business 130,000
Customer lists 40,000
Miscellaneous research expenses 50,000
Development expenses demonstrating 5 out of 6 criteria in PAS 38 par. 57 160,000
Development expenses demonstrating 6 out of 6 criteria in PAS 38 par. 57 270,000
In-process R&D costs acquired in a business combination at fair value 180,000
Intangible asset acquired through a government grant, at fair value 90,000
Equipment acquired for use in various R&D projects 975,000
Depreciation on the above equipment 135,000
Cost of materials used in R&D projects 200,000
Compensation for R&D personnel 500,000
Outside consulting fees 150,000
Indirect costs allocated to the R&D 250,000
Legal costs to file a patent on a certain product; production of which would not have been undertaken without the patent 100,000
Special equipment to be used solely for the development of the product mentioned above; the equipment has no other use and has a useful life of 4 years 600,000
Labor and material costs incurred in producing prototypes 2,000,000
Cost of testing the prototype 800,000
Required - Compute the total amount of intangible assets to be recognized and the amount to be immediately?
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