Reference no: EM133051598
Question 1 - At year-end, Jin Company reported the assets of P8,002,500 and the liability of P5, 790, 300. The carrying amounts of the assets approximate fair value, except for land which has a fair value amounting to P316,900 greater than the carrying amount. On that same day, a company acquired Jin for P2,000,000.
On January 1, 2017, J-hope Company incurred a P1,800,500 cost to develop a product design of the patent. During the year, Development costs incurred after technological viability Are P1,200,300 and additional legal fees and other costs associated with registration of the patent are P385,800.
During 2019, the entity paid P1,000,000 for legal fees in a successful defense of the patent.
The patent's legal life is 10 years and the useful life is 12 years.
How much is the goodwill?
How much is the carrying amount of the patent on December 31, 2020?
Question 2 - RM Company incurred the following costs:
Special equipment to be used in developing various product - P1,000,000
Labor and material costs incurred in producing a prototype model of product BTS - 715,200
Legal costs to file a patent of product BTS - P375,600
Cost of testing the prototype of Product BTS - P200,600
How much is the research and development expense of Product BTS?
Question 3 - Jungkook Company has a single investment property that had an original cost of P4,000,000 on January 1, 2019.
On December 31, 2019, the fair value was P4,120,500 and on December 31, 2020, the fair value was P4,080,200. On acquisition, the property had a useful life of 10 years.
What is the loss reported in the income statement for 2020 under the fair value model?