Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2016, luke company acquired a patent

On January 1, 2016, Luke Company acquired a patent for P750,000 and began amortizing it...

50.1K

Verified Solution

Question

Accounting

On January 1, 2016, Luke Company acquired a patent for P750,000 and began amortizing it over its estimated useful life of 10 years. At December 31, 2019, a significant change in the business climate caused Luke to assess the recoverability of the carrying amount of the patent. Luke estimated that the discounted future net cash inflows from the patent would be P487,500 and that its fair value was P412,500. Accordingly, for the year ended December 31, 2019, Luke should recognize an impairment loss of

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Explain how acute exercise would challenge the delivery of oxygen and release of carbon dioxide as...

Medical Sciences
Q

5a--Pump cavitation can cause impeller problems. With spectra describe how you would detect it using vibration analysis....

Mechanical Engineering
Q

This is a model plant organism O Arabidopsis thaliana O Mus musculus O Drosophila melanogaster...

Biology
Q

The phase difference between current and voltage in an AC circuit is radian If the...

Physics
Q

The moment of inertia of a thin uniform rod of mass M and length L...

Physics
Q

For a given input value x, the function h outputs a value y to satisfy...

Basic Math
Q

Grand Corporation reported pretax book income of $672,500. Tax depreciation exceeded book depreciation by $550,000....

Accounting
Q

The following are financial statements of Ohara Company. was $92,000. The cash used for dividends...

Accounting
Q

Depreciation Expense Using the Units-of-Production Method The Likert Company is a coal company based...

Accounting
Q

Qn 2. External Capital Reconstruction The balance sheet of Kobelo Oil products Ltd....

Accounting
Q

Prabakar and Gita Jain have been married for two years. They have been trying to...

Finance
Q

PLEASE HELP!!! Morrissey Technologies Inc.: Income Statement for December 31, 2021 Sales Operating...

Finance