Reference no: EM133043152
Question - Klaus, Inc. has the ff. information regarding their intangible assets. Klaus spent P2,600,000 of experimental and development costs in its laboratory to develop a patent which was granted on January 2, 2018. Legal fees and other costs associated with the registration of the patent totaled P544,000. Klaus estimates that the useful life of the patent will be 8 years.
Klaus purchased a trademark from Nikolai Co. for P1,280,000 on July 1, 2015. The trademark was successfully defended for a total cost of P326,400 which were paid on July 1, 2017. Klaus estimates that the useful life of the trademark will be 20 years from the date of acquisition.
Klaus signed an agreement on January 1, 2018, to operate as a franchise of Chooks to Go. For an initial franchise fee of P3,000,000. Of this amount, P600,000 was paid when the agreement was signed and the balance is payable in 4 annual installments of P600,000 each, beginning January 1, 2019. The downpayment is nonrefundable and no future services are required of the franchisor. The implicit rate for a loan of this type is 14%. The agreement provides that 5% of the revenues of the franchise must be paid to the franchisor annually. Klaus's revenues from the franchise for 2018 was P38,000,000. Klaus estimates that the useful life of the franchise is 10 years.
1. What the carrying value of the franchise at December 31, 2018?
a. None of the choices
b. 2,250,000
c. 2,700,000
d. 2,113,405
2. What the carrying value of the patent at December 31, 2018?
a. 3,144,000
b. 476,000
c. 544,000
d. 3,076,000
3. What the carrying value of the trademark at December 31, 2018?
a. 1,372,800
b. 1,414,400
c. 1,088,000
d. 1,056,000
|
Will the company need any outside capital
: John has a "TOTAL ASSETS" of $36,200 and "TOTAL LIABILITIES & EQUITY" of $36,200. Will the company need any outside capital
|
|
Concepts of business cultural diversity management
: Imagine a scenario in which you are the administrator of a new company, and apply the concepts of Business Cultural Diversity Management that you consider most
|
|
Case study-employee and labor relations
: The case studies (in weeks 3, 6 and 8) are intended to allow you to apply the lessons learned in the course to real-world situations. Theories are critical comp
|
|
Case-food and beverage service
: You are the supervisor of the Food and Beverage Service Team and have just returned from your monthly management meeting.
|
|
What the carrying value of the trademark at December
: Klaus purchased a trademark from Nikolai Co. for P1,280,000 on July 1, 2015. What the carrying value of the trademark at December 31, 2018
|
|
Mitigate the impact of shocks on unemployment
: The statement is false. A positive average rate of inflation may have some benefits. There is less of a danger of hitting the zero lower bound for interest rate
|
|
Impact of the staffing supply chain
: Many companies only focus on recruiting and hiring when the employees are needed. However, other companies focus on hiring throughout the business cycle in orde
|
|
What price will a finance company pay for conditionally sale
: What price will a finance company pay for a conditionally sale contract requiring 15 monthly payments of $230.50
|
|
Explain the interactive computer program
: Imagine the managers of your company neglect to delegate tasks, and as a result they are not meeting their goals. After an assessment, it is determined that an
|