On December 31, 2019, POGI Corporation acquired the following three intangible assets: A trademark for P400,000....

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On December 31, 2019, POGI Corporation acquired the following three intangible assets: A trademark for P400,000. The trademark has 8 years remaining legal life. It is anticipated that the trademark will be renewed in the future, indefinitely, without problem. ■ Goodwill for P600,000. The goodwill is associated with POGI's Mask Manufacturing reporting unit. A customer list for P350,000. By contract, POGI has exclusive use of the list for 10 years. Because of market conditions. It is expected that the list will have economic value for just 5 years. On December 31, 2020, before any adjusting entries for the year were made, the following information was assembled about each of the Intangible assets: ■ Because of a decline in the economy, the trademark is now expected to generate cash flows of just P20,000 per year. The useful life of trademark still extends beyond the foreseeable horizon. ■ The cash flows expected to be generated by the Mask Manufacturing reporting unit Is P300,000 per year for the next 20 years. Book values and fair values of the assets and liabilities of the Mask Manufacturing reporting unit are as follows: Identifiable assets Goodwill Liabilities Book values Fair values P3,800,000 P4.000.000 1,750,000 ? 2,000,000 2.000.000 c) The cash flows expected to be generated by the customer list are P230.000 in 2021 and P90,000 in 2022. REQUIRED: Based on the above data and the result of your audit, determine the following: (Assume that the appropriate discount rate for all Items is 10%): 1. Total amortization for the year 2020 2. Impairment loss for the year 2020 3. Carrying value of Trademark as of December 31, 2020 4. Carrying value of Goodwill as of December 31, 2020 5. Carrying value of Customer list as of December 31, 2020 On December 31, 2019, POGI Corporation acquired the following three intangible assets: A trademark for P400,000. The trademark has 8 years remaining legal life. It is anticipated that the trademark will be renewed in the future, indefinitely, without problem. ■ Goodwill for P600,000. The goodwill is associated with POGI's Mask Manufacturing reporting unit. A customer list for P350,000. By contract, POGI has exclusive use of the list for 10 years. Because of market conditions. It is expected that the list will have economic value for just 5 years. On December 31, 2020, before any adjusting entries for the year were made, the following information was assembled about each of the Intangible assets: ■ Because of a decline in the economy, the trademark is now expected to generate cash flows of just P20,000 per year. The useful life of trademark still extends beyond the foreseeable horizon. ■ The cash flows expected to be generated by the Mask Manufacturing reporting unit Is P300,000 per year for the next 20 years. Book values and fair values of the assets and liabilities of the Mask Manufacturing reporting unit are as follows: Identifiable assets Goodwill Liabilities Book values Fair values P3,800,000 P4.000.000 1,750,000 ? 2,000,000 2.000.000 c) The cash flows expected to be generated by the customer list are P230.000 in 2021 and P90,000 in 2022. REQUIRED: Based on the above data and the result of your audit, determine the following: (Assume that the appropriate discount rate for all Items is 10%): 1. Total amortization for the year 2020 2. Impairment loss for the year 2020 3. Carrying value of Trademark as of December 31, 2020 4. Carrying value of Goodwill as of December 31, 2020 5. Carrying value of Customer list as of December 31, 2020

Answer rating: 100% (QA)

To determine the required information well analyze each intangible asset separately based on the given data 1 Total amortization for the year 2020 Amo... View the full answer