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On January 1, 2020, Senior Co. acquired Junior Co. for $10 million. During this date, the fair value of the net asset acquired of Junior

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On January 1, 2020, Senior Co. acquired Junior Co. for $10 million. During this date, the fair value of the net asset acquired of Junior Co. was $9.5 million, resulting in a Goodwill of $500,000. On December 31, 2020, statement of financial position for Junior Co. shows as follows: After an impairment review on December 31, 2020, it indicated that the recoverable amount of Junior Co. at that date was $9.1 million. The capitalized development cost has no external market value. However, the PPE has a fair value less cost of disposal of $8.4 million and the value in use cannot be determined. Requirement Show on the impairment loss will be allocated Right now is January 1,2022,A&B Healthcare is in the process of developing a vaccine that can extend the life of humans. The research was completed in 2020 and the estimated research cost was $10 million. A\&B Healthcare started to develop the vaccine on January 1 , 2022 and they incurred $120,000 each month for the development until December 31,2022 when the vaccine went into production. A\&B Healthcare has a fiscal year ending December 31. Ignore any amortization. The CEO of the company confirmed that they've met the criteria to recognize as an intangible asset on June 1, 2022. Requirement: a. What amount will A\&B Healthcare charge to the statement of financial position for the development cost for the year ending December 31, 2022? b. What amount will A\&B Healthcare charge to the statement of profit or loss for the development cost for the year ended December 31, 2022? c. List at least 4 of the criteria that must be met in order for the cost to be recognize as an intangible asset. On September 1,2022, Alpha Co borrowed $10,000,000 for a term of 1 year at an interest rate of 10% to finance the construction of a building. The interest is payable on maturity of the loan in one year. The construction began on December 1,2022 and completed on August 31, 2023. The building construction costs $10,000,000. Requirement: What is the carrying amount of the building for Alpha Co. on the statement of financial position as at August 31, 2023. On January 1, 2020, Senior Co. acquired Junior Co. for $10 million. During this date, the fair value of the net asset acquired of Junior Co. was $9.5 million, resulting in a Goodwill of $500,000. On December 31, 2020, statement of financial position for Junior Co. shows as follows: After an impairment review on December 31, 2020, it indicated that the recoverable amount of Junior Co. at that date was $9.1 million. The capitalized development cost has no external market value. However, the PPE has a fair value less cost of disposal of $8.4 million and the value in use cannot be determined. Requirement Show on the impairment loss will be allocated Right now is January 1,2022,A&B Healthcare is in the process of developing a vaccine that can extend the life of humans. The research was completed in 2020 and the estimated research cost was $10 million. A\&B Healthcare started to develop the vaccine on January 1 , 2022 and they incurred $120,000 each month for the development until December 31,2022 when the vaccine went into production. A\&B Healthcare has a fiscal year ending December 31. Ignore any amortization. The CEO of the company confirmed that they've met the criteria to recognize as an intangible asset on June 1, 2022. Requirement: a. What amount will A\&B Healthcare charge to the statement of financial position for the development cost for the year ending December 31, 2022? b. What amount will A\&B Healthcare charge to the statement of profit or loss for the development cost for the year ended December 31, 2022? c. List at least 4 of the criteria that must be met in order for the cost to be recognize as an intangible asset. On September 1,2022, Alpha Co borrowed $10,000,000 for a term of 1 year at an interest rate of 10% to finance the construction of a building. The interest is payable on maturity of the loan in one year. The construction began on December 1,2022 and completed on August 31, 2023. The building construction costs $10,000,000. Requirement: What is the carrying amount of the building for Alpha Co. on the statement of financial position as at August 31, 2023

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