INSUPERABLE UNSURPASSABLE Co. determined that its trademark is impaired. INSUPERABLE cannot estimate reliably the trademark’s fair value less costs of disposal. However, the following information has been determined: Carrying amount ₱520,000 Annual future cash flows from the trademark 40,000 Discount rate 10% How much is the impairment loss? With solutions please. a. 0 b. 80,000 c. 120,000 d. 400,000

INSUPERABLE UNSURPASSABLE Co. determined that its trademark is impaired. INSUPERABLE cannot estimate reliably the trademark’s fair value less costs of disposal. However, the following information has been determined: Carrying amount ₱520,000 Annual future cash flows from the trademark 40,000 Discount rate 10% How much is the impairment loss? With solutions please. a. 0 b. 80,000 c. 120,000 d. 400,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 76APSA

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Royal Com nany purchased a new trademark and incurred the following costs: Purchase price Nonrefundable value added tax Training of personnel on the use of new trademark Research expenditures associated with the purchase of the new trademark Legal cost incurred to register the new trademark 1,000,000 50,000 70,000 240,000 105,000 120,000 Administrative salaries What amouont should be reported as initial cost of the trademark? a. 1,000,000 b. 1,155,000 c. 1,465,000 d. 1,585,000
Enter Co. determined the following information for the purpose of testing its investment in associate for impairment: Carrying amount of investment (including ₱100,000 goodwill) 1,600,000 Fair value less costs of disposal (FVLCD) 1,440,000 Value in use (VIU) 1,380,000 How much is the impairment loss? 160,000 b. 220,000 c. 60,000 d. 0
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