In Colgate's December 31, 2019, Financial Position what amount should the trademark be reported?
Q: Maria Clara Company carried a provision of P4,000,000 in the draft financial statements for the year…
A: The total final damages to be paid by the company is P6000000
Q: During 2021, Angela Inc. was sued by a competitor for P5,000,000 for infringement of a patent. Based…
A: As per IAS 10, Events after the reporting period, The period between the reporting date and the date…
Q: 1. During 2021, Thor Company was sued by a competitor for P5,000,000 for infringement of a…
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of…
A: As per PFRS cost of intangible asset is it's purchase price or cost incurred after technical…
Q: ABC Company is the defendant in a patent infringement suit filed by XYZ Company in 2020. At Dec. 31,…
A:
Q: Yellow Company acquired a trademark for P10,000,000 from Orange Company on January 5, 2021. The…
A: The intangible assets are used in the business to generate revenues and these assets have a life of…
Q: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…
A: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…
Q: ROSE Company entered into a lawsuit on December 20, 2021 and recognized on the same date a provision…
A: Lets first understand the meaning of current and non-current liability. As per IAS 1 "Presentation…
Q: Colgate Co. bought a trademark from Crest Corp. on May 1, 2019 for P300,000. Its unamortized cost on…
A: The calculation of amount of trademark that should be reported in the Statement of Financial…
Q: On January 2, 2021, Dopey Enterprises, Inc. paid P35,200 in legal fees to successfully defend the…
A: On January 1, 2020 Dopey Enterprises, Inc. developed a new machine that reduces the time required to…
Q: On January 1, 2019, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000,…
A: Prepare journal entry.
Q: During 2021, Marian Company was sued by a competitor for P5,000,000 for infringement of a patent.…
A: Events which occur after reporting date ( balance sheet date ) but upto date of approval of…
Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…
A: The intangible assets of a company are referred to as all those long-term assets that do not have a…
Q: Your investigation of Samsung Corp.’s various non-current asset transactions for 2021 revealed the…
A: Intellectual property rights refers to the legal rights which protects the creators or inventors and…
Q: Steel Magnolia Incorporated purchased a trademark 7 years ago for $275,000. Steel Magnolia believed…
A: An impairment loss seems to be the amount whereby an asset's or cash-generating unit's carrying…
Q: In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of…
A: Trademark shall be measured at costs that are directly associated with its registration. In other…
Q: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…
A: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…
Q: On May 1, 2019, Al-Quds Co. purchased a trademark with a cost of $120000. The trademark is…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued…
A: If at the acquisition date sufficient information is not available then the net assets &…
Q: On June 1, 2021, Oriole & Sons sold equipment to James Landscaping Service in exchange for a…
A: Given: Fair value = $97,200 Face value of note = $112,800 Period = 12 months
Q: Tang company is the defendant in a lawsuit filed by wong in 2019 disputing the validity of copyright…
A: SOLUTION CONTINGENT LIABILITY IS A LIABILITY OR A POTENTIAL LOSS THAT MAY OCCUR IN FUTURE DEPENDING…
Q: During 2020, Sienar Systems, Inc purchased Correalian Drives, Inc. (one of its suppliers) using the…
A: The question carries only goodwill amount, impairment of goodwill is needed as well. If we assume…
Q: On January 1, 2021, ABC Company purchased P600,000, a trademark with an estimated useful life of 16…
A: As per IAS 38, any subsequent expenditure related to the intangible asset that has increased its…
Q: for 2021 revealed the following information: Samsung Corp.’s reported a Trademark at P520,000 at…
A: Goodwill refers to the concept of evaluating the value of the company on the basis of its reputation…
Q: Required: Prepare the journal entry to record the amortization expense on Dec 31, 2020
A: Cost of Trademark = $160000 Useful Life = 10 Years Annual Amortization = Cost / Useful Life =…
Q: ROSE Company entered into a lawsuit on December 20, 2021
A: Lets 1st perceive the which means of current and non-current liability. As per IAS one "Presentation…
Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…
A: Tradename is a form of intangible assets in the business, which is the part of balance sheet or…
Q: On January 1, 2020, Russell Company purchased a copyright for $2,000,000, having an estimated useful…
A: Intangible assets is recognized at purchase cost and legal fees paid in a successful defense and any…
Q: Hepburn Company bought a copyright for $120,000 on January 1, 2018, at which time the copyright had…
A: In straight line depreciation we assume there is uniform annual depreciation of assets and it is…
Q: During 2019, Analee Company filed suit against another entity seeking damages for patent…
A: A contingent asset is an economic gain that is contingent on future events that are mostly outside a…
Q: On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued…
A: Goodwill can be defined as an intangible asset which arises when one company acquires another…
Q: amount should the current liability be presented in the statement of financial position?
A: Current liability is the amount of liability, the payment of which is due within a year.
Q: On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued…
A: If at the acquisition date sufficient information is not available then the net assets &…
Q: On January 30, 2019, a suit was filed against Frazier Corporation under the Environmental Protection…
A:
Q: Using the information below for Baxter Corporation, prepare all necessary journal entries ONLY on…
A: 00Lega Cost for purchase of copyright is added to copyright account. It means the legal cost for…
Q: NovakLimited has a trademark with a carrying amount of $84,000, and expected useful on December 31,…
A: A trademark seems to be an easily recognizable badge, phrase, word, or symbol that denotes a certain…
Q: On January 30, 2021, XYZ Corporation, a non-VAT registered company, purchased from ABC Corporation,…
A: SOLUTION- EXPLANATION- VAT RATE = 12% SALES (A) 280000 OUTPUT VAT (B)= (280000 / 1.12 )…
Q: During 2020, Lomi, Co.filed suit against Ocean, Inc seeking damages for patent infringement. At…
A: Contingent asset refer to such assets whose existence is uncertain because it is dependent of…
Q: Jerely, Inc. had the following noncurrent asset account balance at December 31, 2019: Patent…
A: Intangible Assets Intangible Assets are the assets that do not have any physical existence, that…
Q: On January 1, 2018, Don Company purchased a patent from an original patentee for 2,400,000. The…
A: The patent is the intangible fixed asset and hence required tobe amortised as per…
Q: 1. Compute for the current liability to be presented in the financial position a. P12 million…
A:
Q: Amway Corporation acquires a used desk on December 26, 2019, and places the desk in service on…
A: IRC deduction is better than depreciation.
Q: Sheridan Company purchased equipment in 2019 at a cost of $917000. Two years later it became…
A: Required journal entry:
Q: On January 1, 2019, Jericho Company purchased a patent for P7,140,000. The patent is being amortized…
A: Answer is option B) 4,896,000
Q: During 2023, Lowry Company was used by a competitor for P5,000,000 infringement suit of a trademark.…
A: Introduction:- Financial statements are written documents that explain a company's activities and…
Q: On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to a…
A: Formula: Total amortization deduction = Amortization for patent + Amortization for Goodwill
Q: On May 1, 2019, Al-Quds Co, purchased a trademark with a cost of $120000, The trademark is…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: On December 31, 2019, Aquinas Company had equipment that had a carrying amount of $300,000 which the…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: During 2020, Marian Company was sued by a competitor for P5,000,000 for infringement of a patent.…
A: The word "accrued liability" is defined as a business expenditure that has been generated but has…
Colgate Co. bought a trademark from Crest Corp. on May 1, 2019 for P300,000. Its unamortized cost on Crest's accounting records was P112,000. Colgate decided to amortize the trademark over its legal life from the date of purchase. In Colgate's December 31, 2019, Financial Position what amount should the trademark be reported?
Step by step
Solved in 2 steps
- At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial reporting purposes, the asset has a 4-year life with no residual value and is depreciated by the straight-line method beginning in 2019. For tax purposes, the asset is depreciated under MACRS using a 5-year recovery period. Prior to 2019, Conley had no deferred tax liability or asset. The difference between depreciation for financial reporting purposes and income tax purposes is the only temporary difference between pretax financial income and taxable income. The current income tax rate is 30%, and no change in the tax rate has been enacted for future years. In 2019 and 2020, taxable income will be higher or lower than financial income by what amount?1. On May 1, 2019, ABC Corporation bought a trademark from DEF Corporation for P300,000. Its unamortized cost on DEF’s accounting records was P112,000. ABC Corp decided to amortize the trademark over its legal life from the date of purchase. What amount should the trademark be reported on its December 31, 2019, ABC’s Financial Position? 2. An entity is performing an annual test of the impairment of goodwill for a cash-generating unit. It has determined that the fair value of the unit exceeds the carrying amount. Which statement is true concerning the test of impairment? A. Goodwill should be written down as impaired. B. Impairment is not indicated and no additional analysis is necessary. C. Goodwill should be retested at the entity level. D. The assets and liabilities should be valued to determine if there has been an impairment of goodwill. 3. Which of the following items would qualify as an intangible asset? A. Advertising and promotion on the launch of a huge product B.…Yellow Company acquired a trademark for P10,000,000 from Orange Company on January 5, 2021. The trademark is carried in the accounting records of Orange at an amortized cost of P7.6 million. Yellow Company's consultant has estimated that the useful life of the trademark to be indefinite. What amount should Yellow report as accumulated amortization at Dec. 31, 2021?
- On January 1, 2021, ABC Company purchased P600,000, a trademark with an estimated useful life of 16 years. In January 2025, ABC paid P90,000 for legal fees in a successful defense of the trademark. ABC recorded amortization expense for the year ended December 31, 2025, of 45,000. The amount of expense for the year 2025 is overstated or understated by how much?Probst Company acquired a trademark several years ago at a cost of $60,000. Probst has never considered the trademark to be impaired. However, at the end of 2019, Probst has determined that the trademark is impaired because of a change in market conditions. It estimates that the trademark has a fair value of $40,000 at the end of 2019. Required: 1. Prepare Probst’s journal entry (if any) to record the impairment of its trademark at the end of 2019. 2. Next Level Assume Probst uses IFRS. If Probst estimates that the cost of selling the trademark is zero but the value-in-use is $45,000, prepare Probst’s journal entry to record the impairment of its trademark at the end of 2019. 3. Assume, instead, that Probst estimated that the trademark had a fair value of $70,000 at the end of 2019. How would Probst account for this if it were using (a) U.S. GAAP or (b) IFRS?On January 1, 2019, Sandhill Corp. purchased a trademark for $352950, which had an estimated useful life of 15 years. In January 2023, Sandhill paid $44990 for legal fees in a successful defence of the trademark. The amortization expense for this asset for calendar 2023, should be $17370. $20369. $27620,. $0
- On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued its Decemher 31. 2021. financial statements. the valuation of an acquired trademark was incomplete. ABC used P10,000,000 as provisional fair value of trademarks and determined a 5-year amortization life. ABC appropriately disclosed in its December 31, 2021 tinancial statements that the trademark was measured at a provisional amount. On April 30, 2022, the valuation of the trademark was finalized. The fair value of the acquisition date amounted to P212,000,000. Compute fpr the increase or (decrease) of the Goodwill in December 31, 2022In early January 2019, Outkast Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Outkast incurred $7,800 of legal fees in a successful defense of its trade name. Instructions a. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years. b. Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Outkast determines that the trade name will provide no future benefits beyond December 31, 2023. c. Ignoring the response for part .b., compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Outkast determines that the fair value of the trade name is $15,000. Estimated total future cash flows from the trade name is $16,000 on January 3, 2021.On December 31, 2019, Aquinas Company had equipment that had a carrying amount of $300,000 which the company wrote down to its $250,000 fair value. At the end of 2020 it was determined that the fair value of the equipment had risen to $320,000. At December 31, 2020, assuming Aquinas does not intend to dispose of the equipment, how should Aquinas record the change in fair value of the equipment? A. The carrying amount of the equipment should not change except for the depreciation taken in 2020. B. The equipment should reflect the new cost basis of $300,000. C. The equipment should reflect the new cost basis of $320,000. D. The equipment should reflect the new cost basis of $270,000.
- On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. Required Compute the ending carrying value of the tradename for 2022 and 2023. Should thecompany amortize the tradename?On January 1, 2018, Joel Company purchased a patent for P7,140,000. The patent is being amortized over its remaining legal life of 15 years. During 2021, Joel determined that the economic benefits of the patent would not last longer than 10 years from the date of acquisition. What should be reported in the statement of financial position as carrying amount of patent on December 31, 2021?On January 2, 2021, Kerwin Company purchased a patent for $48,000. The patent has an estimated useful life of 25 years and a 20- year legal life. What entry would the company make at December 31, 2021 to record amortization expense on the patent? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit