Old MathJax webview

need computation & explanation.

Class Exercise 3 ABC Bhd acquired a patent for RM340000 on 1 July 2013 and amortised it on a straight-line basis over 17 years which is the patent's legal life. On 1 July 2018, a review of the useful life of the patent revealed that the benefits from the patent would be enjoyed over a total of 10 years rather than 17 years. Which of the following statement(s) is true regarding the change in the useful life of the patent? 1. Amortisation expense for the year ended 30 June 2019 will be RM48,000. II. Accumulated amortisation on 1 July 2018 should be restated to RM170,000. Ill. The carrying amount of the patent on 1 July 2018 should be restated to RM170,000. IV. The opening balance of retained profit on 1 July 2018 should be adjusted with the amortisation underprovided in the previous years. A. I only B. I and IV C. II and III D. III and IV ACT S102 FINANCIAL ACCOUNTING AND REPORTING 2 23 UMT