Question: How much should be recognized as customer database? Bookworm Company purchased a customer database and a formula for a new fuel substitute for diesel fuel

How much should be recognized as customer database?
Bookworm Company purchased a customer database and a formula for a new fuel substitute for diesel fuel for a total of P98,000 (single price). Bookworm Company uses the expected cash flow approach for estimating the fair value of these two intangibles. The appropriate interest rate is 5%. The potential future cash flows from the two intangibles, and their associated probabilities, are as follows: Customer Database: Outcome 1 - 20% probability of cash flows of P10,000 at the end of each year for 5 years. Outcome 2 - 30% probability of cash flows of P2,000 at the end of each year for 4 years. Outcome 3 - 50% probability of cash flows of P200 at the end of each year for 3 years. Formula: Outcome 1 - 10% probability of cash flows of P50,000 at the end of each year for 10 years. Outcome 2 - 30% probability of cash flows of P30,000 at the end of each year for 4 years. Outcome 3 - 60% probability of cash flows of P10,000 at the end of each year for 3 years. The present value factors are: PVF of 1, at 5%, three periods 0.8638 PVF of 1, at 5%, four periods 0.8227 PVF of 1, at 5%, five periods 0.7835 PVF of 1, at 5%, ten periods 0.6139 PVF of ordinary annuity 1, at 5%, three periods 2.7232 PVF of ordinary annuity 1, at 5%, four periods 3.5460 PVF of ordinary annuity 1, at 5%, five periods 4.3295 PVF of ordinary annuity 1, at 5%, ten periods 7.7217 PVF of annuity due 1, at 5%, three periods 2.8594 PVF of annuity due 1, at 5%, four periods 3.7232 PVF of annuity due 1, at 5%, five periods 4.5460 PVF of annuity due 1, at 5%, ten periods 8.1078 How much should be recognized as customer database
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