Financial Accounting > QUESTIONS & ANSWERS > ACCTING 1002Topic 4 tutorial solutions Week 5 (NCA) Topic 4 Tutorial solution The questions and solu (All)

ACCTING 1002Topic 4 tutorial solutions Week 5 (NCA) Topic 4 Tutorial solution The questions and solutions were discussed in Week 5 beginning 29 March 2021

Document Content and Description Below

Chapter 8 Exercise 10 Debit Credit 15/03/2020 Impairment Loss $65,000 Accumulated Impairment Losses – Equipment $65,000 (Impairment loss for equipment) AASB 116 para. 31, 31 and 73 requires to... use accumulated impairment loss account. Chapter 8 Exercise 15 The carrying amount of the patent (intangible asset) is $180,000. i. All research costs must be expensed, so the $600,000 research costs are not included in the carrying amount of the patent. ii. The development cost cannot be capitalised (recognised as an intangible asset) if the company cannot demonstrate the technical feasibility. The $170,000 development costs must be expensed. iii. The development cost cannot be capitalised (recognised as an intangible asset) if the company cannot reliably measure the expenditure. The $120,000 development costs must be expensed. Internally generated intangible assets; AASB 138 para. 54 & 57 Chapter 8 Exercise 21 (page 151) Purchase price of copy right = $ 264 000 Legal life = 20 years Economic life = 15 years Amortisation expense per year = $264 000 / 15 = $17 600 Debit Credit 30 June Amortisation expense $17 600 Accumulated amortisation Copy Right $17 600 [For first-year amortisation expense] Chapter 8 Case 25 (page 151) (Case study solution will not be provided at MyUni. These will only be discussed in the seminars.) [Show More]

Last updated: 2 years ago

Preview 1 out of 5 pages

Buy Now

Instant download

We Accept: