The respondent's email address (alyannashane.alcantara@antipolo.benilde.edu.ph) was
recorded on submission of this form.
Car Company recently acquired a copyright that now has remaining legal 1/1 life of 40 years. The copyright initially had a 30-year useful life. An analysis of market trend and consumer habit indicated that the copyrighted material will generate positive cash flows for approximately 25 years. What is the remaining useful life over which the entity can amortize the copyright? *
30
25
40
The cost of an internally generated asset includes all of the following, 1/1 except *
Expenditure on training staff to operate the asset.
Fees to register a legal right.
Cost of materials and services used in generating the intangible asset.
Compensation costs of personnel directly engaged in generating the asset.
Northstar Company acquired a registered trademark for P600,000. The 1/1
trademark has a remaining legal life of five years but can be renewed every 10 years for a nominal fee. The entity was expected to renew the trademark indefinitely. What amount of amortization expense should be recorded for the trademark in the current year? *
40,000
15,000
120,000
Tobin Company incurred P1,600,000 of research and development costs 1/1
to develop a product for which a patent was granted at the beginning of current year. Legal fees and other costs associated with registration of the patent totaled P300,000. At year-end, the entity paid P450,000 for legal fees in successful defense of the patent. What is the total amount that should be capitalized for the patent at year-end? *
On January 1,2013, Lava Company purchased a patent for a new 1/1
consumer product for P900,000. At the time of purchase, the patent was valid for 15 years.However, the useful life of the patent was estimated to be only 10 years due to the competitive nature of the product.On December 31,2016, the product was permanently withdrawn from sale under governmental order because of a potential health hazard in the product.What amount should be charged against income in 2016 if amortization is recorded at the end of each year? *
630,000
720,000
90,000
540,000
SURNAME *
Alcantara
Which of the following would qualify as an intangible asset? * 1/1
Operating losses during the initial stage of the project
Tuition fees paid to employees who decide to enroll in an MBA program while working with the entity
It is probable that future economic benefits attributable to the asset will flow to the entity
It is possible that future economic benefits attributable to the asset will flow to the entity and the cost of the intangible asset can be measured reliably.
The cost of the intangible asset can be measured reliably.
It is probable that future economic benefits attributable to the asset will flow to the entity and the cost of the intangible asset can be measured reliably.
The residual value of an intangible asset with a finite useful life shall be 1/1 assumed zero, except *
When there is a commitment by a third party to purchase the asset at the end of the useful life or when there is an active market for the asset and it is probable that such market will exist at the end of the useful life.
When there is an active market for the asset and it is probable that such market will exist at the end of the useful life.
There are no exceptions.
When there is a commitment by a third party to purchase the asset at the end of the useful life
The amortization method shall reflect the pattern in which the economic 1/1 benefits from the asset are consumed by the entity. If such pattern cannot be determined reliably, what amortization method should be used? *
Straight line method
Production method
Ratio of current year’s sales to the total expected sales
What total amount should be reported as intangible assets? * 1/1
5,400,000
4,500,000
5,800,000
1,400,000
Iceberg Company purchased a patent on January 1, 2011 for P6,000,000. 1/1
The original useful life was estimated to be 15 years.However, in December 2016, the management received information proving conclusively that the product protected by the Iceberg patent would be obsolete within four years.Accordingly, the entity decided to write off the unamortized cost of the patent over five years beginning in2016. *
What amount should be recognized as cost of the in-process research 1/1
and development? *
2,400,000
2,000,000
2,800,000
Mark Company bought a franchise at the beginning of current year for 1/1 P2,040,000. An independent consultant estimated that the remaining useful life of franchise was 50 years.This unamortized cost of the franchise was P680,000. The entity decided to amortize the franchise over maximum period allowed.What amount should be recorded as amortization of franchise for the current year? *
40,000
17,000
51,000
40,800
This form was created inside of De La Salle-College of Saint Benilde.
