INTERMEDIATE ACCOUNTING SUBJECT

Lee Company provided the following information for the year ended December 31, 2014:

Cash	500,000
Trade and other receivables	1,500,000
Inventories	100,000
Dairy livestock - immature	50,000
Dairy livestock - mature	400,000
Property, plant and equipment, net	1,400,000
Trade and other payable	520,000
Note payable - long term	1,500,000
Share capital	1,000,000
Retained earnings - January 1	800,000
Fair value of milk produced	600,000
Gain from change in fair value	50,000
Inventories used	140,000
Staff costs	120,000
Depreciation expense	15,000
Other operating expenses	190,000
Income tax expense	55,000

1. What is the net income for 2014? 2. What is the fair value of biological assets on December 31, 2014? 3. Which of the following is not a characteristic of an intangible asset? a. Physically exists c. Relatively long lived b. Confers certain rights d. Value highly uncertain

On January 1, 2019, Boracay Company bought a trademark from Lamitan Company for P3,000,000. Boracay retained an independent consultant who estimated the trademarks life to be indefinite. Its carrying amount in Lamitans accounting records was P1,500,000. 4. In Boracays December 31, 2019 balance sheet, what amount should be reported as trademark?

Rava Company developed a trademark to distinguish its products from those of its competitors. Through advertising and other means, the company is seeking to establish significant product identification to increase future sales. The similarity between the trademark costs and other intangible and operating costs has caused some confusion over proper accounting. The following items are being treated as part of the cost of the trademark:

Marketing research to study consumer tastes	400,000
Design costs of trademark	1,500,000
Legal fees of registering trademark	150,000
Advertising to establish recognition of trademark	200,000
Registration fee with Patent Office	50,000

Through renewals, the trademark is expected to have an unlimited life. 5 : The cost to be capitalized as trademark should be?

A natural resources property was purchased by Nge Wang Company for 6,000,000. The output was estimated to be 1,500,000 tons. Nge Wang Company purchased a mining equipment at a cost of 8,000,000 and has a useful life of 10 years but is capable of exhausting the resource in8 years. Production is as follows:

1st Year 150,000 tons

2nd Year 225,000 tons

3rd Year None

4th Year 225,000 tons

6: What is the carrying amount of the mining equipment at the end of four years?

a. 4,800,000 c. 4,200,000 b. 4,000,000 d. 4,500,000