CHAPTER 6 INTANGIBLE ASSETS PROBLEMS 6-1 Amsterdam Enterprises Costs of testing prototype 70,800 b.. Fees paid to Phil... Amortization Expense for 2006 c.
Trang 1CHAPTER 6 INTANGIBLE ASSETS PROBLEMS
6-1 (Amsterdam Enterprises)
Costs of testing prototype 70,800
b Fees paid to Phil Patent Office P 7,500
Drawings required by the patent office 14,100 Legal costs of filing patent 38,100
Patent cost, January 1, 2004 P 59,700 Less amortization of patent for years 2006 and 2007
(59,700/ 17) x 2 yrs 7,024 Patent carrying value, December 31, 2007 P 52,676
c Patent carrying value at December 31, 2008
Remaining estimated useful life at January 1, 2009 ÷ 5 Amortization expense for year 2009 P 9,833
Patents
Less accumulated amortization
36,000 + (156,000 ÷ 8) 55,500 P 136,500 License
Cost (80 x 600 x 2/3) P 32,000 Less accumulated amortization (32,000/4) 8,000 24,000 Trademark
Cost (80 x 600 x 1/3) P 16,000 Less accumulated amortization (16,000/4) 4,000 12,000 Goodwill (12M – 8M) 4,000,000 Total intangible assets P4,172,500 6-3 (July, Inc.)
2001
2001-2004
Accumulated Amortization-Patents 19,600 196,000 / 10
2005
2005
Accumulated Amortization-Patents 19,600 2006
Trang 2Cash 60,000 2006-2008
Accumulated Amortization-Patents 15,800
196,000 – (19,600 x 5) = 98,000 (98,000 + 60,000) / 10 = 15,800
2009
Accumulated Amortization-Patents 7,900 15,800 x 6/12 = 7,900
1 Loss from Writedown of Patents 102,700
Accumulated Amortization-Patents 153,300
196,000 + 60,000 = 256,000 98,000 + (15,800 x 3.5 yrs) = 153,300
Amortization per year P100,000
Amortization expense for 2006 (100,000 x 6/12) P 50,000
b Carrying amount, December 31, 2007 (500,000 – 150,000)
P350,000
150,000
Impairment loss at December 31, 2007 P200,000
c Written down value of patent at December 31, 2007
P150,000
Less depreciation for 2008
Carrying amount at December 31, 2008 P100,000
d Sound value at January 1, 2009
P600,000
Carrying amount at December 31, 2008 100,000
Recovery of previous impairment loss through lower amortization = 200,000 / 3 200,000
6-5 (Summer Company)
2007
Trang 3Dec 31 Amortization Expense 12,000
Accumulated Amortization-Patents 12,000 2008
0
0 2008-2009
Accumulated Amortization-Patents 87,200 (120,000-12,000) + 1,200,000 =
1,308,000 1,308,000/15 = 87,200 2009
Dec 31 Loss from Writedown of Patents 1,133,36
0 Accumulated Amortization 186,400
0
6-6 (April Company)
Modification of formulation 26,000
Depreciation of equipment (280,000/5) 56,000
a
0
0 Dec 31 Franchise Fee Expense 500,000
Dec 31 Amortization Expense 312,500
Accumulated Amortization-Franchise 312,500 6,250,000/10 = 625,000; 625,000 x 1/2
b
2009
Dec 31 Amortization Expense 142,500
Accumulated Amortization-Patents 142,500 750,000 x 9.5/10 = 712,500; 712,500 / 5
c
0
0 Accumulated Depreciation-Equipment 100,000
0
R&D=200,000+1,400,000+600,000+100,000=
2,300,000
Trang 4(1,000,000 / 5) x ½ = 100,000
a Fair value of net assets
(1,000,000 + 1,700,000 + 5,900,000 – 2.360,000) P6,240,000
0
0 Property, Plant and Equipment 5,900,00
0
0
0 6-9 (Global Computer Corporation)
0
Accumulated Amortization-Software 175,000 500,000 x 1.4M/4M = 1,300,000
6-10 (Sun Company)
Present value of future payments
b Amortization Expense for 2006
c
2009
Discount on Notes Payable 102,620
10% x 497,380 = 57,600
31 Amortization Expense 179,476
Accumulated Amortization-Franchise 179,476 2010
Trang 5MULTIPLE CHOICE QUESTIONS
Theory
2
7
c
0
5
0
c
Problems
MC21 d 244,000 + 100,000 = 344,000
MC22 a P0
MC23 c 750,000 + 150,000 = 900,000
MC24 b 1,200,000 x 2/50 = 48,000; (750,000 ÷ 10) x 2/12 = 12,500
60,000 x 2/12 = 10,000; 48,000 + 12,500 + 10,000 = 70,500 MC25 b 125,000 ÷ 10 = 12,500; 272,500 ÷ 5 = 54,500 x ½ = 27,250
656,200 ÷ 17 = 38,600; 12,500 + 27,250 + 38,600 = 78,350 MC26 b 200,000 + (100,000 x 2.91) = 491,000
MC27 c 340,000 ÷ 10 = 34,000 x ½ = 17,000
MC28 c 340,000 – 17,000 – 34,000 = 289,000
MC29 b 289,000 ÷ 5 = 57,800
MC30 a P0
MC31 c 68,000 + 24,000 + 6,000 + 19,000 = 117,000
MC32 c 152,000 ÷ 8 = 19,000
MC33 a 1,440,000 x 1.5/10 = 216,000
MC34 d 40,000 + 5,000 = 45,000
MC35 c 900,000 x 7/10 = 630,000
MC36 b 210,000 + 300,000 + 400,000 + 220,000 + 260,000 = 2,080,000 MC37 c 1,500,000 ÷ 30 = 50,000
MC38 b 1,000,000
MC39 d 480,000 ÷ 10 = 48,000
MC40 a (480,000 x 5/10) + 200,000 = 440,000; 440,000 ÷ 10 = 44,000
Trang 6MC41 b 440,000 – (44,000 x 3.5 yrs) = 286,000
MC42 b 270,000 x 6/10 = 162,000; 162,000 ÷ 3 = 54,000; 162,000 – 54,000 =
108,000 MC43 c 1,150,000 – 525,000 = 625,000; 700,000 – 625,000 = 75,000
MC44 d 1/5=20%; Depreciation is the higher rate which is 30%; thus carrying amount is
70%
MC45 a 1,500,000 ÷ 5,000,000 = 30%; 30% x 2,500,000 = 750,000