Keisha Co. incurred the following expenditures on internally developed intangible assets Internally developed goodwill 100,000 Brands 230,000 Mastheads 50,000 Publishing titles 100,000 Customer lists 70,000 Keisha incurred P 100,000 additional costs in maintaining the customer lists. The company also treated all the intangible assets with an indefinite useful life. How much is the total carrying amount of the capitalized intangible assets at year-end?
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- Keisha Co. incurred the following expenditures on internally developed intangible assets
Internally developed |
100,000 |
Brands |
230,000 |
Mastheads |
50,000 |
Publishing titles |
100,000 |
Customer lists |
70,000 |
Keisha incurred P 100,000 additional costs in maintaining the customer lists. The company also treated all the intangible assets with an indefinite useful life.
How much is the total carrying amount of the capitalized intangible assets at year-end?
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- ABC Co. has a division that is considered to be a cash-generating unit for purposes of IAS 36, impairment of assets. The recoverable amount of this cash-generating unit is $130 000 at 31 December 2014. The carrying amount of the cash-generating unit is $181 000 at 31 December 2014, constituted by the following individual carrying amounts as at this date: Goodwill (purchased goodwill): 20 000 Equipment (measured under the cost model): 60 000 |Investment property (measured under the cost 81 000 model: Inventory 20 000 The recoverable amounts at 31 December 2014 for the goodwill and investment property could not be estimated on an individual basis, but the recoverable amount for equipment was estimated to be $40 000. In accordance with IAS 2 the net realizable value of the inventory was $15 000. Required: Calculate whether the cash-generating unit is impaired and compute the impairment loss if there's any.Company A applies IFRS. The following information pertains to Company A's intangible assets: On December 31, Year 3, Company A determines the following data regarding one of its cash-generating units (CGUs): Total CGU Liabilities Other Assets Goodwill Carrying amount $90,000 ($160,000) $200,000 $50,000 Fair value minus cost to sell $80,000 Value in use $65,000 On January 1, Year 2, Company A purchased a restaurant franchise for $360,000. The franchise has an active market, and the company applies the revaluation model as its accounting policy regarding franchises and amortizes them using the straight-line method. The estimated useful life of the franchise is 20 years with no residual value. The company revalues the franchise at the end of each year. The fair values of the franchise at the end of Years 2 and 3 are $350,000 and $330,000 respectively. During Year 1, the company incurred the following costs in relation to an internally developed patent: research…Company A applies IFRS. The following information pertains to Company A's intangible assets: On December 31, Year 3, Company A determines the following data regarding one of its cash-generating units (CGUs): Total CGU Liabilities Other Assets Goodwill Carrying amount $90,000 ($160,000) $200,000 $50,000 Fair value minus cost to sell $80,000 Value in use $65,000 On January 1, Year 2, Company A purchased a restaurant franchise for $360,000. The franchise has an active market, and the company applies the revaluation model as its accounting policy regarding franchises and amortizes them using the straight-line method. The estimated useful life of the franchise is 20 years with no residual value. The company revalues the franchise at the end of each year. The fair values of the franchise at the end of Years 2 and 3 are $350,000 and $330,000 respectively. During Year 1, the company incurred the following costs in relation to an internally developed patent: research…
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- Shanette Company incurred research and development costs in the current year as follows: Equipment acquired for use in various research and development projects Depreciation on the above equipment Materials used 975,000 135,000 200,000 500,000 150,000 250,000 Compensation costs of personnel Outside consulting fees Indirect costs appropriately allocated What is the research and development expense for the current year? A. 850,000 В. 1,085,000 С. 1,235,000 D. 1,825,000During the current accounting period, Jack Ltd considered the recognition of the following costs as intangible assets. GHS 40,000 spent on evaluating research findings GHS 60,000 spent on acquiring a brand name from a competitor GHS 50,000 spent on acquiring the legal rights to a production process, without which Jack Ltd’s business cannot function In accordance with IAS 38 Intangible Assets, what is the maximum amount that Jack Ltd could recognize as intangible assets?The following information relates to Mangi Food cash generated unit. Goodwill attributable to the cash generated unit amounts to R57 000 and the CGU consists of the following assets. Acquisition date Cost Depreciation policy Building 1 January 2019 356 780 5 years straight line with R10 000 residual value Plant 31 July 2017 234 600 10% diminishing balance Equipment 6 July 2019 123 450 5% on cost Machinery 1 January 2017 200 000 10% on cost Value in use and fair value amounted to R620 000 and R565 700 respectively. And cost to sell were estimated as R13 400. Required Calculate and allocate the impairment of CGU.
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