Julie Co. incurred the following expenditures in establishing its taxi business in a local city: Date...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Julie Co. incurred the following expenditures in establishing its taxi business in a local city: Date May 1, 2016 June 30, 2016 June 30, 2016 July 1, 2016 July 1, 2016 Amount Additional information P 1,500 7,000 100,000 100 20,000 General start-up costs Legal costs directly attributable to the acquisition of the taxi licenses Payment to the taxi licensing authority for the taxi licenses, including P10,000 refundable purchase taxes Printing business cards of the drive Payment for an advertisement to be published every day for the next 12 months in a local daily newspaper At December 31, 2016, Julie Co. made the following assessments: Economic life of the taxi license: five years from June 30, 2016 (the date of acquisition) Residual value of the taxi licenses: nil The entity expects to consume the taxi licenses' future economic benefits evenly over five years from the date of acquisition There is no indication that the taxi licenses might be impaired. The taxi drivers own their own vehicles which they operate under Julie Co.'s taxi licenses. Questions: Based on the above, compute for the following: 1. Cost of intangible assets at initial recognition 2. Amortization in 2016 3. Carrying amount of intangible assets as of December 31, 2016 4. Total expenses in 2016 relating to establishment of taxi business 5. Carrying amount of intangible assets as of December 31, 2017 Julie Co. incurred the following expenditures in establishing its taxi business in a local city: Date May 1, 2016 June 30, 2016 June 30, 2016 July 1, 2016 July 1, 2016 Amount Additional information P 1,500 7,000 100,000 100 20,000 General start-up costs Legal costs directly attributable to the acquisition of the taxi licenses Payment to the taxi licensing authority for the taxi licenses, including P10,000 refundable purchase taxes Printing business cards of the drive Payment for an advertisement to be published every day for the next 12 months in a local daily newspaper At December 31, 2016, Julie Co. made the following assessments: Economic life of the taxi license: five years from June 30, 2016 (the date of acquisition) Residual value of the taxi licenses: nil The entity expects to consume the taxi licenses' future economic benefits evenly over five years from the date of acquisition There is no indication that the taxi licenses might be impaired. The taxi drivers own their own vehicles which they operate under Julie Co.'s taxi licenses. Questions: Based on the above, compute for the following: 1. Cost of intangible assets at initial recognition 2. Amortization in 2016 3. Carrying amount of intangible assets as of December 31, 2016 4. Total expenses in 2016 relating to establishment of taxi business 5. Carrying amount of intangible assets as of December 31, 2017
Expert Answer:
Answer rating: 100% (QA)
1 Cost of intangible assets at initial recognition Cost of intangible assets Payment for taxi licens... View the full answer
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
Posted Date:
Students also viewed these accounting questions
-
Can the pressure and volume both be reduced without any temperature change?
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
An accounting firm is considering dropping a client who paid $105,000 in audit fees, but cost $120,000, including billable employee time ($90,000), supplies and copying($4,000), client-specific fixed...
-
In Exercises find the values of x for which the series converges. n=0 (x + 1)n n!
-
Prove that the function f(x) = x101 + x51 + x + 1 has neither a local maximum nor a local minimum.
-
A plano-convex lens having a radius of curvature of r = 4.00m is placed on a concave glass surface whose radius of curvature is R= 12.0 m, as shown in Figure P37.65. Determine the radius of the 100th...
-
How to draft the different forms of written discovery?
-
Reveille, Inc., purchased Machine #204 on April 1, 2010, and placed the machine into production on April 3, 2010. The following information is relevant to Machine #204: Price...
-
1. Lachi Company manufactures a product in 3 departments. Information related to the 2 nd department are: Work in process, beginning(75% conversion cost) - 1,400 u Units received from Department 1 -...
-
Alex was in his friend Allison's home drinking straight vodka and doing drugs. Alex told Allison that he has not taken his prescribed mental health medications for two weeks. This did not concern...
-
Pick one theoritical framework of your choice to explain a behavior and how it may affect development ?
-
Andrew's of Oregon, a corporation headquartered and incorporated in Maine, makes and sells vitamins and other nutritional supplements. Tom, a resident of California, sees an ad for Andrew's of Oregon...
-
How did Amazon grow (focus on products/services): - During the dot com boom (late1990s to the early2000s) ? - After the dot com bust (early2000s to mid2000s) ? - Recently ? Where are the similarities...
-
make at least four sentences each. 1. How do performing artists differ to each other while practicing the same art form? 2. How does GAMABA promote traditional arts to young generation?
-
Explain the two major categories of Filipino arts which TRADITIONAL and NON-TRADITIONAL ARTS. REFERENCE ...
-
Identify who should be initially contacted for the following situations: 1. A fire fighter has deployment orders from his military reservist unit. 2. A fire fighter's CPR card expires next month. 3....
-
Calcuate a five-period moving average forecast for June Period Actual Forecast Jan Feb Mar Apr May June Question 2 Using the following weights (W1-0.5, W2=0.3, W3-0.2) calculate the forecast for June...
-
Explain the differences and similarities between fringe benefits and salary as forms of compensation.
-
Target Corporation holds assets with a fair market value of $4 million (adjusted basis of $2.2 million) and liabilities of $1.5 million. It transfers assets worth $3.7 million to Acquiring...
-
Olga is the proprietor of a small business. In 2019, the businesss income, before consideration of any cost recovery or 179 deduction, is $250,000. Olga spends $620,000 on new 7-year class assets...
-
Olivia wants to buy some vacant land for investment purposes. She currently cannot afford the full purchase price. Instead, Olivia pays the landowner $8,000 to obtain an option to buy the land for...
-
Fill in the Blank. Cork is a(n) ____________ isolator.
-
True or False. High loss factor of a material implies less damping.
-
The damping caused by the internal friction of a shaft material is called a. stationary damping b. external damping c. rotary damping
Study smarter with the SolutionInn App