Reference no: EM132932923
Questions -
Q1) On January 1, 2016, Stan Corporation acquired a patent for P270,000. Amortization is being made over its remaining life of ten years expiring in 2026. In 2020, Stan estimated that the useful life of the patent will be seven years from the date of acquisition.
In Stan Corporation's December 31, 2020 statement of financial position, what amount should be reported as accumulated amortization?
A.P162,000
B.P108,000
C.P23,143
D.P54,000
Q2) On January 1, 2021, E Company acquired 65% interest in F Company for P6,720,000 cash. On January 1, 2021, the fair value of identifiable assets of F Co. was P9,600,000 and liability was P1,200,000. How much is the goodwill to be recorded by E company?
A.P720,000
B.P0
C.P240,000
D.P1.260,000
Q3) IT Company purchased an investment property on October 15, 2021. IT gave the following as payment for the investment property: P3,000,000 cash; P2,000,000, 12%, one-year note dated October 15, 2021; and machinery with a carrying amount of P250,000 but was given a trade-in allowance of P175,000. The present value factor of P1 for 1 period at 12% is 0.89. What is the initial cost of investment property?
A.P5,250,000
B.P5,030,000
C.P5,175,000
D.P4,955,000