Co. bought a patent from Backo Corp. on January 1, 20x4, for ₱180,000. An independent consultant retained by Ely estimated that the remaining useful life is 30 years. Its unamortized cost on Backo's accounting records was ₱90,000; the patent had been amortized for 5 years by Backo. How much should be amortized for the year ended December 31
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Ely Co. bought a patent from Backo Corp. on January 1, 20x4, for ₱180,000. An independent consultant retained by Ely estimated that the remaining useful life is 30 years. Its unamortized cost on Backo's accounting records was ₱90,000; the patent had been amortized for 5 years by Backo. How much should be amortized for the year ended December 31, 20x4?
Question 10 options:
a
|
0 |
b
|
3,000 |
c
|
6,000 |
d
|
12,000 |
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- Current Attempt in Progress Cullumber Company incurred research and development costs of $89000 to develop a patent, and legal fees of $29000 to register the patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Cullumber record as Patent Amortization Expense in the first year if the straight-line method is used? O $5900 O $2900 O $11800 O $0Question 15 options: 8-6b(1). Use of asset. Farmacy Stuff bought a patent for a great medical cure for $15,000 on May 1, 2014. The patent has a remaining life of 5 years and will be amortized using the straight-line method. Farmacy closes its books on December 31. Calculate the amount of amortization expense on the intangible asset for 2015 (round to nearest dollar; do not use "$" or commas in your answer)Answer letter C only Pamantasan ng Lungsod ng Maynila buys a solar panel unit for P105,000. The shipping and installation fees amount to P15,000. If the unit is expected to last for 15 years, with a salvage value of P3,000, what is the depreciation charge during the 12th year, and the book value at the end of 14 years by the (a) Declining balance method, (b) DDB method, (c) sinking fund method given interest rate at 12.5 percent, and (d) Sum-of-the-Years Digit(SYD) Method
- 9. A granite company is planning to buy a fully automated granite cutting machine. If it is purchased under down payment, the cost of the machine is ETB 16,00,000. If it is purchased under installment basis, the company has to pay 25% of the cost at the time of purchase and the remaining amount in 10 annual equal installments of ETB 2,00,000 each. Suggest the best alternative for the company using the present worth basis at i = 18%, compounded annually.A company has purchased a machine (CCA rate 24%) at $300,000 and has a tax rate of 33.00%. By how much will the NPV change if the company is able to obtain a $13,000 salvage value for its machine at the end of the project's life in Year 4? Assume a discount rate of 11.20% and that all else remains the same. Question 10Answer a. $8,502 b. $10,415 c. -$1,913 d. $6,589 e. $10,075Problem 3: On January 1, 2012, Enrich Company purchased a machine under the following terms: a. 100,000 downpayment b. four annual payments of P200, 000, the first installment to be paid on December 31, 2012The fair value of the machine is not clearly determinable on the date of acquisition.The prevailing rate of interest for this type of obligation is 10%. The present value factors at 10% for four periods are:Present value of 1 .683Present value of ordinary annuity of 1 3.170Required: How much is the cost of the machine_________________ what is the rule in solving the problem? Problem 4: Ocean Company recently acquired several items of property, plant and equipment. The transactions are as follows: 1. Purchases a building for P1, 000, 000 in cash and 50, 000 shares of Ocean company with P100 par value which sold for P120 on transaction date 2. Received a parcel of land located in Davao City from a philanthropist as an…
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