User Account

All Pages

How much can be recognized as gain on impairment recovery

Assignment Help Financial Accounting
Reference no: EM132781102

Question - Please provide solution and explanation. I am a slow learner Thank you so much GGGG Corporation acquired a patent right on July 1, 2016 for P250,000. The remaining legal life on the date of purchase is 15 years. However, due to rapidly changing technology, management estimates that the remaining useful life on July 1, 2016 is only 5 years.

At January 1, 2017, management is uncertain that the process can actually be made economically feasible, and decides to write down the patent to an estimated recoverable amount of P75,000. Amortization will be taken over 3 years from that point.

On January 1, 2019, having perfected the related production process, independent valuers certified that the asset has a fair value of P300,000. Furthermore, the estimated useful life is now believed to be 6 more years.

Required -

1. How much can be recognized as gain on impairment recovery is 2019?

2. How much can be recognized as revaluation surplus on January 1, 2019?

3. Carrying amount of patent at the end of the year 2019?

Reference no: EM132781102

Questions Cloud

Compute the yield to maturity on the old issue : Airborne Airlines Inc. has a $1,000 par value bond outstanding with 30 years to maturity. Compute the yield to maturity on the old issue
What psychological impact does a non-violent approach : What psychological impact does a non-violent approach/ideology have on a movement?
Examples of sensory adaptation : Dana rides a skateboard. Identify at least 3 senses Dana will use while riding the skateboard and explain how they will be used.
Have the directors violated their duty to exercise care : Have the directors violated their duty to exercise care and diligence under Section 180(1) of the Corporations Act 2001 (Cth)? Explain your answer.
How much can be recognized as gain on impairment recovery : The estimated useful life is now believed to be 6 more years. How much can be recognized as gain on impairment recovery is 2019
Discuss dmc and its consequences : What intervention techniques have been shown to be effective in youth affected by family violence? Discuss DMC and its consequences.
Elaborate on the concepts of self-efficacy and gender : What aspects of gender identity or socialization may impact a person's sense of confidence, ability, and mastery? Elaborate and provide examples.
Calculate enterprise value of xyz based on each multiple : Calculate enterprise value of XYZ based on each multiple.YZ ltd opening net book value of $1,265,487 and number of shares of 550,678 (both values in thousand)
Discuss the evolution of fire investigations : Using proper APA format in at least 800 words, briefly discuss the evolution of fire investigations and its impact on arson cases. As well as, briefly provide.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What the true branch net income for may is

P38,000 and a closing inventory of P23,000 at billed price. As far as the home office is concerned, the true branch net income for May 2008 is

  Prepare a static budget report for the quarter

Maris Company accumulates the following sales data for its product, Garden-Tools-Prepare a static budget report for the quarter.

  Evaluation of students to these financial measures

Should college professors limit their evaluation of students to these “financial” measures? Do you see any potential benefits or disadvantages of including other measures of student performance in assigning course grades?

  Compute and show entry to admit new partner into business

Compute and Show the entry to admit the new partner into the business. Mahomes joins the partnership. He is anxious to join and agrees to pay $46,000 for a 20%

  Analyze the impact on the financial statements

Prepare a flowchart which demonstrates how accural accounting and cash flows are linked for a merchandise sale. Analyze the impact on the financial statements

  How to forecast the legislative payments on termination

How to forecast the legislative payments on termination of employment for a large group of employees that that work for a large organization

  How many years would be before would accumulate

If you have $8,500 today and you could earn 3 percent interest per year, how many years would it be before you would accumulate $10,000?

  What is the contribution to income from processing

What is the contribution to income from selling the 14,000 pounds of HS at split-off? Conceptual Connection: What is the contribution to income from processing the 14,000 pounds of HS into 4,000 pounds of CS?

  Findvalue of lease liability and the right-of-use

Assuming an incremental borrowing rate of 7% for Kulver's Inc., determine the value of the lease liability and the right-of-use asset on January 1, 2020

  Company planned to tear old building down-build new building

Assume that a company buys land with a building on it for $1,500,000. At the time of purchase the company planned to tear the old building down and build a new building. If management desired the smallest depreciation possible over the next five (5) ..

  What will be the theoretical value of the rights attached

The current share price of the company is £8.00. What will be the theoretical value of the rights attached to each original share?

  Which alternative should clearly canadian choose

Quality versus costs. Assume Clearly Canadian has discovered a problem involving the mix of flavor to their seltzer water that costs the company $3,000 in waste and & $ 2500 in lost business per period. Which alternative should Clearly Canadian choos..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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