Determine carrying amount of intangible assets

Assignment Help Financial Accounting
Reference no: EM132911534

Question - On January 1, 2019, A Company's financial statements included the items: a patent of P1,000,000 with related accumulated amortization of P100,000. The patent was purchased on January 1, 2017 at which date the legal life is 10 years. However, as of January 1, 2019, the remaining useful life was determined to be 5 years.

A non-competing agreement reached with a competitor in relation to a trademark the company purchased. A Company paid P250,000 to the competitor in total. It was determined that 40% of this was for the trademark and 60% was for the agreement not to compete for a 3-year period. Further, the company will pay the competitor an agreed amount of P50,000 annually as a result of the contract.

Determine carrying amount of intangible assets as of December 31, 2019.

Reference no: EM132911534

Questions Cloud

Contemporary theories of motivation : Choose one of the contemporary theories of motivation and describe why you would promote this theory over the others.
Describe the big five personality dimensions : 1) Describe the Big Five personality dimensions and give an example of each.
Address aesthetic problem : You should address an aesthetic problem, and/or analyze a television program, or film, drawing on the various aesthetic insights you are learning in this class.
Which accounting principle is jackson violating : Which accounting principle is Jackson violating? Jackson Co. has inventory which costed $20,000 when purchased. The cost to replace inventory has since dropped.
Determine carrying amount of intangible assets : A Company paid P250,000 to the competitor in total. Determine carrying amount of intangible assets as of December 31, 2019
Determining the type of pricing strategy : What type of pricing strategy does a typical pet groomer of cats and dogs use? Available options are: Yield Management, Loss Leader, Cocreation
What is the definition of pestel analysis : What is the definition of PESTEL analysis. What does each letter stand for in paragraph form
Public key infrastructure to function : Describe how asymmetric encryption allows Public Key Infrastructure (PKI) to function. How does symmetric encryption work to protect files?
Which statements is true of a balance sheet : Which Receiving money from a customer immediately after providing a service will cause total assets, total liabilities, and equity to?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd