Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Oriole Town Taxi Incorporated applied for several taxi licences for its taxicab operations in the town of Somerville and, on August 3 1 , 2
Oriole Town Taxi Incorporated applied for several taxi licences for its taxicab operations in the town of Somerville and, on August incurred costs of $ in the application process. The outcome of applying for taxi licences in the town was uncertain, as Somerville has been known to limit the number of issued taxi licences in an effort to encourage use of public transportation. The application was successful and on June Oriole was granted freely transferable taxi licences for a registration fee of $ per licence. According to management, each licence will have a useful life of only years from the date of registration, because demand for taxi services in Somerville is expected to decrease significantly after the town's subway system is expanded. There is an active market for taxi licences in Somerville. In in an effort to decrease traffic congestion in its downtown, the town did not issue any new taxi licences, and the fair value of each taxi licence held by Oriole was $ as at December In due to a severe shortage of taxis in the town, Somerville decreased the registration fee and issued many new taxi licences. As at December each taxi licence had value in use of $ fair value of $ and costs to sell of $ Oriole amortizes intangible assets using the straightline method, and prepares financial statements in accordance with IFRS. a Prepare the entry to record the costs incurred on August Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No entry" for the account titles and enter O for the amounts. List debit entry before credit entry. Date Account Titles and Explanation Debit Credit Aug.
Oriole Town Taxi Incorporated applied for several taxi licences for its taxicab operations in the town of Somerville and, on August incurred costs of $ in the application process. The outcome of applying for taxi licences in the town was uncertain, as Somerville has been known to limit the number of issued taxi licences in an effort to encourage use of public transportation.
The application was successful and on June Oriole was granted freely transferable taxi licences for a registration fee of $ per licence. According to management, each licence will have a useful life of only years from the date of registration, because demand for taxi services in Somerville is expected to decrease significantly after the town's subway system is expanded. There is an active market for taxi licences in Somerville.
In in an effort to decrease traffic congestion in its downtown, the town did not issue any new taxi licences, and the fair value of each taxi licence held by Oriole was $ as at December In due to a severe shortage of taxis in the town, Somerville decreased the registration fee and issued many new taxi licences. As at December each taxi licence had value in use of $ fair value of $ and costs to sell of $ Oriole amortizes intangible assets using the straightline method, and prepares financial statements in accordance with IFRS.
a
Prepare the entry to record the costs incurred on August Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No entry" for the account titles and enter O for the amounts. List debit entry before credit entry.
Date Account Titles and Explanation
Debit
Credit
Aug.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started