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What amount should be reported as investment in

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21. What amount should be reported as Investment in Equity Securities in the statement of financial position on December 31, 2014? CODE GEASS reports the following patents on its December 31, 2013 statement of financial position. Initial Cost Date of Acquisition Useful life (At date of acquisition) Patent A P1,224,000 March 1, 2010 17 years Patent B 450,000 July 1, 2011 10 years Patent C 432,000 Sept. 1, 2012 4 years The following events occurred during the year ended December 31, 2014. 1. Research and development costs P737,100 were incurred during the year. These costs were incurred prior to projects achieving economic viability. 2. Patent D was purchased on July 1 for P855,000. It has remaining life of 9 ½ years. 3. A possible impairment of Patent B’s value may have occurred at December 31, 2014. This is due to a significant reduction in the demands for certain products protected by Patent B. The company’s controller estimates the following future cash flows from Patent B. December 31, 2015 60,000 December 31, 2016 60,000 December 31, 2017 60,000 The appropriate discount rate to be used for these cash flows is 8%.
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  • Fall '17
  • Gutierrez
  • 1966, 1981, 1973, 1970, 1977, 1983

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