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The following are the research and development costs

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9. The following are the research and development costs incurred by Jay Pia Company relatedto their new product which is a wireless powerbank for laptops:I.Design and construction of a prototype amounting to Php 2,000,000II.Patent registration fee of Php 100,000III.Legal fees related to registration amounting to Php 150,000IV.Engineers’ salaries amounting to Php 500,000Which costs should not be capitalized in Jay Pia Company’s patent?a.I and IIb.I and IVc.III and IVd.I, II, and III
10. The following are necessary disclosures as stated exactly in IAS 16 par 73exceptfor:
Part II. Short Problems(10 items)1. I Can’t Stop Me Company purchased a building and a land for a lump-sum price ofP10,000,000 on June 1, 2019. On this date, the fair value of the land was P9,000,000, while thebuilding had a fair value of P3,000,000. The company also incurred renovation costs amountingto P2,000,000 to put the building to its intended use. The land and the building were ready foruse on June 30, 2019. What is the capitalized cost of the building?2. On December 31, 2018, Dingga Company sold a building. The building costs P3,800,000 andthe accumulated depreciation was P1,600,000 at the date of sale. It received, as consideration,a P4,000,000 non-interest bearing note due in 3 years. The prevailing rate of interest for a noteof this type was 12%. In its December 31, 2018 financial statements, how much gain or lossshould Dingga report on the derecognition of its asset?3. At the beginning of the year, an equipment was acquired by LaBAAn Company at aninstalment price of P900,000. The company made a down payment of P100,000, and apromissory note was issued for the balance. The note requires the company to pay P50,000every June 30 and December 31, starting in the year of acquisition. The prevailing rate ofinterest for this kind of note is 10%. At what amount should the equipment be initially recorded?For items 4 and 5:Nico Nico Ni Inc. acquired a building on January 1, 2010 for P9,000,000. At that date, the

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Term
Spring
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Tags
Depreciation, CPA In Transit Company

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