Solution-What amount should be reported as accumulated

What amount should be reported as accumulated amortization

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Reference no: EM132932248

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Q1) Luna Corp. has the following investments which were held throughout 2020 to 2021: Trading

Cost- P300,000

FV, 12/31/2020- P400,000

FV, 12/31/2021- P380,000

Non-trading

Cost- P300,000

FV, 12/31/2020- P320,000

FV, 12/31/2021- P360,000

What amount of gain or loss would Luna Corp. report in its income statement for the year ended December 31, 2021, related to its investments?

a. P20,000 loss

b. P20,000 gain

c. P80,000 gain

d. P140,000 gain

Q2) On January 1, 2016, Ling Corporation acquired a patent for P270,000. Amortization is being made over its remaining life of ten years expiring in 2026. In 2020, Ling estimated that the useful life of the patent will be seven years from the date of acquisition.

In Ling Corporation's December 31, 2020 statement of financial position, what amount should be reported as accumulated amortization?

a. P23,143

b. P108,000

c. P54,000

d. P162,000

Q3) On January 1, 2021, Green Company acquired 65% interest in Yellow Company for P6,720,000 cash. On January 1, 2021, the fair value of identifiable assets of Yellow Co. was P9,600,000 and liability was P1,200,000.

How much is the goodwill to be recorded by Green company?

a. P720,000

b. P240,000

c. P0

d. P1,260,000

Reference no: EM132932248

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What amount should be reported as accumulated amortization

Reference no: EM132932248

Reference no: EM132932248

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