Reference no: EM133185197
Questions -
Q1) Hewei Company was granted a patent on January 1, 2021 and capitalized P450,000. The entity was amortizing the patent over the useful life of 15 years. During 2024, the entity paid P150,000 in successfully defending an attempted infringement of the patent.
After the legal action was completed, the entity sold the patent to the plaintiff for P740,000. How much is the gain from sale of patent in 2024 assuming no amortization will be taken in the year of disposal?
a. 390,000
b. 360,000
c. 380,000
d. 450,000
Q2) On April 1, 2021, Deli Corp. paid cash of P620,000 for all of the net assets of Dali Company appropriately accounted for as a merger. The recorded assets and liabilities of Dali Company on April 5, 2021 follow:
Cash, 60,000
Inventory, 180,000
PPE (net of acc.dep. 220,000), 300,000
Goodwill, 100,000
Liabilities, 120,000
On April 1, 2021, Dali's inventory had a fair value of P150,000 and the PPE(net) had a fair value of P360,000. The amount of goodwill recorded in the books of Deli as a result of the business combination should be?
a. 150,000
b. 170,000
c. 70,000
d. none
Q3) Ube Company and its subsidiaries provided the following properties owned by the group:
Land held for undetermined future use, 1,200,000
Vacant building to be leased out under an operating lease, 2,000,000
Property held for use in production, 4,000,000
Property held by subsidiary in the ordinary course of business, 3,000,000
Building owned by subsidiary and for which the subsidiary provides security and maintenance services to the lessees, 2,500,000
Land leased to a subsidiary under an operating lease, 1,500,000
Land leased to a subsidiary under a finance lease, 2,000,000
Equipment leased out under an operating lease, 500,000
Building under construction for use as investment property, 3,500,000
In the consolidated statement of financial position of Ube Company and its subsidiaries, what total amount should be reported as investment property?
a. 9,000,000
b. 9,200,000
c. 13,000,000
d. answer not given