Showing posts with label Finacc Volume 1 Solutions. Show all posts
Showing posts with label Finacc Volume 1 Solutions. Show all posts
Monday, November 15, 2010
FINALLY VOLUME FINACC VOLUME 1 IS FINISHED
Finally the whole volume 1 is uploaded to my blogsite... I will try to upload the volume 2 later
Valix Finacc vol 1 Problem 20-46 to 50
Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-46 to 50
Problem 20-47 Answer A
Problem 20-48 Answer D
Problem 20-50 Answer B
Chapter 20 Problem 20-46 to 50
Problem 20-46 Answer C
Depreciation of equipment 135,000
Materials used 200,000
Compensation costs of personnel 500,000 Outside consulting fees 150,000 Indirect costs allocated 250,000 1,235,000
Problem 20-47 Answer A
Modification to the formulation of a chemical product 135,000
Design of tools, jigs, molds and dies 170,000
Laboratory research 215,000
Total research and development expense 520,000
Problem 20-48 Answer D
All costs are charged to R and D expense.
Problem 20-49 Answer A
Trademark 3,000,000
Value in use (120,000 / 6%) 2,000,000
Impairment loss 1,000,000
Patent 2,000,000
Amortization for 2008 (2,000,000 / 5) 400,000
Book value – 12/31/2008 1,600,000
Value in use (500,000 x 3.47) 1,735,000
Impairment loss -_ _
Problem 20-50 Answer B
Carrying amount of net assets 16,000,000
Value in use (8,000,000 x 1.5) 12,000,000
Impairment loss – applicable to goodwill 4,000,000
Valix Finacc vol 1 Problem 20-41 to 45
Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-41 to 45
Problem 20-42 Answer C
Problem 20-43 Answer A
Problem 20-45 Answer D
Chapter 20 Problem 20-41 to 45
Problem 20-41 Answer A
Problem 20-42 Answer C
Downpayment 2,000,000
Present value of annual payment for 4 years (1,000,000 x 2.91) 2,910,000 Cost of franchise 4,910,000
Problem 20-43 Answer A
Design costs 1,500,000
Legal fees of registering trademark 150,000
Registration fee with Patent Office 50,000
Total cost of trademark 1,700,000
Problem 20-44 Answer B
Original lease 12 years
Extension 8
Total life 20
Less: Years expired (2006 and 2007) 2
Remaining life 18 years
Life of improvement (shorter) 15 years
Leasehold improvement 540,000
Less: Depreciation for 2008 (540,000 / 15) 36,000
Book value 504,000
Problem 20-45 Answer D
Depreciation (3,600,000 / 6) 600,000
Valix Finacc vol 1 Problem 20-35 to 40
Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-35 to 40
Problem 20-35 Answer C
Problem 20-38 Answer C
Problem 20-40 Answer C
Chapter 20 Problem 20-35 to 40
Problem 20-35 Answer C
Cost 357,000
Accumulated amortization from 2005 to 2007 (357,000 / 15 x 3) 71,400
Book value – 12/31/2007 285,600
Amortization for 2008 (285,600 / 7) 40,800
Book value – 12/31/2008 244,800
Problem 20-36 Answer C
Cost 1/1/2003 6,000,000
Accumulated depreciation – 12/31/2007 (6,000,000 / 15 x 5) 2,000,000
Book value – 1/1/2008 4,000,000
Amortization for 2008 (4,000,000 / 5) 800,000
Problem 20-37 Answer C
Cumulative earnings 550,000
Less: Gain on sale 50,000
Adjusted cumulative earnings 500,000
Average earnings (500,000 / 5) 100,000
Divide by capitalization rate 10%
Net assets including goodwill 1,000,000
Less: Net assets before goodwill 750,000
Goodwill 250,000
Problem 20-38 Answer C
Net assets 1,800,000
Multiply by excess rate (16% minus 10%) 6%
Excess earnings 108,000
Multiply by present value factor 3.27
Goodwill 353,160
Problem 20-39 Answer D
Purchase price 5,000,000
Less: Goodwill 500,000
Net assets before goodwill 4,500,000
Estimated annual earnings (squeeze) 550,000
Less: Normal earnings (4,500,000 x 10%) 450,000
Excess or superior earnings 100,000
Divide by capitalization rate 20%
Goodwill 500,000
Problem 20-40 Answer C
Accounts receivable 2,000,000
Inventory 500,000
Equipment 500,000
Short-term payable (2,000,000)
Net assets at fair value 1,000,000
Acquisition cost 5,000,000
Net assets at fair value (1,000,000)
Goodwill 4,000,000
Valix Finacc vol 1 Problem 20-34
Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-34
Chapter 20 Problem 20-34
1. Designing and planning 1,000,000
Code development 1,500,000
Testing __500,000
Total R and D expense in 2008 3,000,000
The cost of producing the product master of P2,500,000 is capitalized as
software cost to be subsequently amortized.
1. Cost of producing the software program in 2009 1,000,000
Amortization of software cost (2,500,000 / 4) 625,000
Total expense in 2009 1,625,000
Valix Finacc vol 1 Problem 20-33
Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-33
Chapter 20 Problem 20-33
1. Product costs which are associated wit inventory items are:
Duplication of computer software and training materials 2,500,000
Packaging product 900,000
Total inventory 3,400,000
2. The costs incurred from the time of technological feasibility to the time when
product costs are incurred should be capitalized as computer software cost.
Other coding costs after establishment of technological feasibility 2,400,000
Other testing costs after establishment of technological feasibility 2,000,000
Costs of producing product masters for training materials 1,500,000
Total costs to be capitalized 5,900,000
3. Completion of detail program design 1,300,000
Cost incurred for coding and testing to establish technological feasibility 1,000,000
Total costs charged as expense 2,300,000
Valix Finacc vol 1 Problem 20-32
Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-32
Chapter 20 Problem 20-32
12/31/2008 R and D expense 2,500,000
Cash 2,500,000
1/1/2009 R and D expense 1,200,000
Cash 1,200,000
7/1/2009 R and D expense 500,000
Cash 500,000
11/1/2009 Patent 350,000
Cash 350,000
11/15/2009 Patent 800,000
Cash 800,000
12/31/2009 Patent 100,000
Cash 100,000
Valix Finacc vol 1 Problem 20-31
Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-31
Chapter 20 Problem 20-31
1. Total carrying amount 5,000,000
Value in use 4,230,000
Impairment loss 770,000
2. Impairment loss 770,000
Goodwill 500,000
Accumulated depreciation – building (25/45 x 270,000) 150,000
Inventory (15/45 x 270,000) 90,000
Trademark (5/45 x 270,000) 30,000
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