Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. During 2021, the following were acquired/paid for by Smallville Company Paid 800,000 in acquiring Clark Company. The amount included P60,000 for a technology patent;
1. During 2021, the following were acquired/paid for by Smallville Company
- Paid 800,000 in acquiring Clark Company. The amount included P60,000 for a technology patent; P45.000 for a franchise agreement and P80,000 which was attributed to the company's good reputation. Smallville Company likewise paid Clark Company P120,000 for a non-competing contract preventing Clark Company from engaging in a similar industry for a period of five years.
- Training cost incurred for a specialized product line, P60,000
The amount included under intangible assets is
2. During 2021, Lana Company acquired the following:
- Music copyrights. 60,000
- Cable television license, P95,000
- Acquired an operating system for a computer controlled machine for P90,000
- Acquired an application software for its design and rendering team, P110,000
The amount to be included as intangible assets is
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started