Hello there! The questions are all about intangible assets and R&D costs. Kindly explain the solutions on how you get the answer. The data are in a paragraph form. There are no missing graphics, data or other informations. Thank you.

Items 1 to 6 are based on the following : Yo-yo Ma Company assembled the following data relating to a certain entity in determining the amount to be paid for net assets and goodwill. Assets at fair value before goodwill 10,400,000 ; Liabilities 3,600,000 ; Net earnings 2016 800,000; 2017 920,000; 2018 1,200,000; 2019 1,000,000; 2020 1,080,000

1. What is the goodwill if average earnings are capitalized at 10%?

2.What is the amount of goodwill if a return of 8% is considered normal on net assets at fair value and excess earnings are capitalized at 15%?

3.What is the goodwill if a return of 10% is considered normal on net assets at fair value and goodwill is measured at 5 years excess earnings?

4.What is the goodwill if a return of 10% is considered normal on net assets at fair value and expected earnings are expected to continue for 10 years while goodwill is measured by the present value method using a 12% rate?

5.What is the acquisition cost in reference to item number 2?

6.In reference to number 4, what amount is credited to Cash?

7.At year-end, DuPre Company reported assets of P10,000,000 and liabilities of P4,000,000. The carrying amounts of these assets approximate fair value, except for land which has a fair value that is P600,000 greater than the carrying amount. Jacqueline Company paid P12,000,000 to acquire DuPre Company at year-end. What amount of goodwill of should be recorded by the acquirer as a result of this purchase?

8.At year-end, Casals Company purchased the another entity for P16,000,000. The carrying amount of the acquiree's net assets on the date of the acquisition is P12,400,000. An analysis indicated that the fair value of the acquiree's tangible assets exceed the carrying amount P1,200,000, and the fair value of identifiable intangible assets exceeded carrying amount by P900,000. What amount of goodwill should be recognized by the acquirer?

9.Rostropovich Company purchased the net assets of another entity for P12,000,000. On the date of the transaction, the acquire had P4,000,000 of liabilities. The assets of the acquire at fair value were P6,000,000 for current assets and P12,000,000 for noncurrent assets. What amount is credited to Gain on Bargain Purchase, if any?

10.Maisky Company purchase for cash at P100 per share all 150,000 ordinary shares outstanding of another entity. The statement of financial position of the acquire on the date of acquisition showed net assets with a carrying amount of P12,000,000.The fair value of property, plant and equipment on the same date was P1,600,000 in excess of carrying amount. What amount should be recorded as goodwill on the date of purchase?

11.Hauser Company purchased another entity for P10,000,000 cash. The following carrying amount and fair value were associated with this acquisition: Accounts receivable CA 4,000,000; FV 4,000,000; Inventory CA 2,000,000; FV 1,000,000; Equipment CA 800,000; FV 1,000,000; ST loan payable CA 4,000,000; FV 4,000,000. What is the goodwill arising from the acquisition?

12.At the current year-end, Fournier Company purchased for P60 per share all 200,000 of another entity's outstanding ordinary shares. On this date, the acquires statement of financial position showed net assets of P10,000,000. Additionally, the fair value of the acquiree's identifiable assets on this date was P800,000 in excess of carrying amount. In the statement of financial position, what amount should be reported as goodwill as a result of the acquisition?

13.At the current year-end, Isserlis Company purchased for P8,000,000 cash all of the outstanding ordinary shares of another entity when the statement of financial position of the acquire showed net assets of P6,400,000. The acquiree's assets and liabilities had fair value different from the carrying amount as follow: PPE, net CA 10,000,000; FV 11,500,000; Other assets CA 1,000,000; FV 0; Long-term debt CA 6,000,000; FV 5,600,000. As a result of the transaction, what amount should be reported as goodwill in the statement of financial position at current year-end?

14.Boccherini Company spent a total of P 2,040,000 in developing a patent which was applied for on July 1, 2019. The patent was issued on January 1, 2020. The cost of licensing was nominal and useful life of the patent is 15 years. On January 1, 2022, the company purchased a related patent for P2,880,000. The related patent has a remaining useful life of 16 years. The related patent is believed to extend the useful life of the old patent. On January 1, 2023, the entity purchased a competing patent for P2,160,000 in order to protect the original patent. What is the carrying amount of the patent on December 31, 2023?

Items 15 and 16 are based on the following : In 2019, Feuermann Company spent P1,000,000 for the research and development of the patent. On January 1, 2020, the company paid P240,000 to apply for and obtain right to the patent. The useful life of the patent is 10 years. On January 1, 2021, the company purchased for P2,400,000 a new patent that is expected to prolong the life of the original patent by 6 years. On December 31, 2022, a competitor obtained rights to a patent which rendered the entity's patent obsolete.

15. What is the amortization expense in 2022?

16.What amount in charged to Loss on patent writeoff in 2022?

17.Weilerstein Company entered into a franchise agreement to sell the products of a franchisor for 20 years. The agreement provides that Weilerstein Company shall pay an initial fee of P24,000,000 in cash upon the signing of the agreement at the beginning of the current year. Further, the agreement provides that the franchisee shall pay a periodic fee of 5% based on the quarterly gross sales. During the current year, the company realized gross quarterly sales of P25,000,000.What is the carrying amount of the Franchise at the end of second year?

Items 18 and 19 are based on the following : At the beginning of the current year, Tortelier Company signed an agreement to operate as a franchise of McBee Foods for an initial franchise fee of P32,000,000 for a period of 10 years. Of this amount P12,000,000 was paid when the agreement was signed and the balance payable in 5 annual payments of P4,000,000 at every year-end. The franchisee signed a noninterest-bearing note for the balance. The market rate of interest for this note is 10%. In return for the initial franchise fee, the franchisor will help in locating the site, negotiate the lease or purchase the site, supervise the construction activity and provide training to employees. The initial services required on the franchisor are substantially performed.

18. What is the carrying amount of the Franchise at the end of third year?

19.What is the interest expense in the second year?

20.At the beginning of the current year, Starker Company acquired a 5-year lease on land and building from another entity at an annual rental of P4,800,000. On the same date, the entity paid P9,600,000 representing rental for the first year and an advance rental for one year which will be applied for the last year of the lease contract. Further, the company paid P8,000,000 upon signing of the contract to obtain right to the lease. Improvements and alterations were made on the building at a cost of P2,000,000. What is the carrying amount of the leasehold improvement at the end of the year?