2. Financial Accounting. Please help to answer ASAP within one hour. Thank you very much.

1. The revaluation model:

a) Is applicable to intangible assets when the company so chooses

(b) Is applicable to intangible assets when the enterprise otherwise applies it to property, plant and equipment

c) Is applicable to intangible assets provided an active market exists.

d) Is applicable only during the first year of operation of the business.

e) None of the above.

2. The company "K.C.C." Afrique provides you with the following information relating to a patent it recently acquired:

On October 1, 2020, it acquired patent GH-48 from DE GROSBOIS ET TAILLON S.A. at a cost of $5,316,000.

The buyer estimates that its useful life is 12 years.

As of December 31, 2020 and December 31, 2021, K.C.C. Africa applied an impairment test to its property, plant and equipment and concluded that no impairment should be recognised.

On January 1, 2021, however, it estimates that the remaining life of the patent is 8 years.

Calculate the net book value of the patent as of December 31, 2021.

Answer:

	Dtail of the calculation	Rsult
Price paid
Depreciation - Year 2020
V.C.N.
Depreciation Year 2021
V.C.N. from patent 2021-12-31

3. A.B.C.-M.T.L, a Canadian corporation, informs you that for its fiscal year ended December 31, 2050, it incurred the following development costs:

Process design: $300,000

Construction of prototypes: $450,000

Prototype testing: $150,000 Calculate the book value of development costs as of December 31, 2050.

Answer:

Asset	Amount
Total

4. During the fiscal year ended December 31, 2040, SECIIM, a Quebec corporation, provides you with the following information:

Exclusive right to use the corporate name of the franchisor, TECHNO-3000, for 10 years: $400,000.

Salaries of employees who worked for the acquisition of the franchise: $80,000.

Advertising campaign led by TECHNO-3000 related to the opening of the franchise: $6

Calculate the book value of the franchise as of December 31, 2040.

Answer:

Asset	Amount
Total

5. LES HABITATS DU DOMAINE inc. decided to abandon, on July 31, 2025, the activities of its womens lingerie division. For this 7 month period of the year, the pre-tax operating loss of this division was $500,000. Additionally, when it sold this division, it recorded a pre-tax loss of $84,000. Given that the tax rate is 35%, what amount will the company present in the statement of net income, in the section of discontinued operations on the date of December 31, 2025, corresponding to the end of the 'financial exercise?

Answer:

Operating Result
Loss on disposal
Total
tax
Net income on discontinued operations