Reference no: EM132932184
Problem - COPYRIGHT: On July 1, 2021, ETC Company purchased copyright for P800,000, having an estimated useful life of 16 years. On November 1, 2021, ETC paid P120,000 for legal fees in a successful defense of the copyright.
PATENT: On July 1, 2021, ETC Company purchased a patent from the investor, who asked P2,200,000 for it. ETC paid for the patent as follows: Cash of P600,000; issuance of 15,000 shares of its own ordinary shares with a par value of P20 and market value of P60 per share; non interest-bearing note payable due at the end of three years, P500,000. The prevailing rate of interest for this type of financing is 12%. ETC estimates the useful life of the patent to be 8 years.
TRADEMARK: ETC purchased for P1,200,000, a trademark for a very successful vitamin it markets under the name Butter. The trademark is determined to have an indefinite life. A competitor recently introduced a new product that is in direct competition with Butter product so the need for impairment testing arises. Data gathered suggests that the trademark still has an indefinite life, but the cash flows expected to be generated by the trademark have been reduced to either P40,000 per year (with 50% probability), or to P80,000 per year (with 50% probability). The appropriate risk-free rate is 8% and the risk-adjusted rate is 10%.
How much is the total amortization expense for 2021?
A. P140,993
B. P169,993
C. P281,986
D. P165,993
|
Illustrate the concept of natural
: Explain why Sagoff uses Shakespeare's character Perdita to illustrate the concept of natural.
|
|
Write the necessary adjusting entry
: Davenport Docking estimates that the allowance account should be 1.75% of accounts receivable. Write the necessary adjusting entry
|
|
What amount will be considered the eligible portion
: What amount will be considered the eligible portion? Pasqual was hired at Unique Furniture on September 15, 1979 and his employment was terminated March.
|
|
What future developments
: What future developments will we see for blockchain applications?
|
|
How much is the total amortization expense
: ETC Company purchased copyright for P800,000, having an estimated useful life of 16 years. How much is the total amortization expense
|
|
How long will wait from now
: You expect to receive $13,000 at graduation in two years. You plan on investing it at 12 percent until you have $104,000. How long will you wait from now?
|
|
Which statements about depreciation methods is false
: Which statements about depreciation methods is FALSE? Sinking fund depreciation is a common depreciation method in the U.S
|
|
How investigations done using different technique
: Law enforcement professionals and investigators use digital forensic methods to solve crimes every day.
|
|
What is the initial cost of investment property
: Love gave the following as payment for the investment property: P3,000,000 cash; P2,000,000, What is the initial cost of investment property
|