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EXERCISES PROBLEM 1 On January 1, 2020, Ace Company registers a patent for a total registration and legal costs of P600,000. Ace estimates that the

EXERCISES

PROBLEM 1

On January 1, 2020, Ace Company registers a patent for a total registration and

legal costs of P600,000. Ace estimates that the patent has a remaining useful life

of 25 years. How much is the carrying amount of the patent on December 31,

2020.

PROBLEM 2

Bow incurred the following costs during 2020:

Testing in search for, or evaluation of,

product or process alternative 150,000

Adaptation of an existing capability to a

Particular requirement or customer's need 210,000

Design, construction and testing of preProduction prototypes and models 310,000

Routine design of tools, jigs, molds, and dies 190,000

How much is the research and development expense in 2020?

PROBLEM 3

Cee Corp. acquires a building to be leased out under various operating leases. Cee

incurs the following costs on the acquisition:

Purchase price P 20M

Legal services and transfer taxes 20,000

Refurbishments before occupancy 60,000

Occupancy permit fees 50,000

Property taxes after occupancy 16,000

Opening costs (blessing and feng shui) 1M

The initial measurement of the investment property is?

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