Reference no: EM132788042

Question - Transactions during 2020 of the newly organized Uranus Company included the following:

Jan 2 Paid legal fees of P150,000 and stock certificate costs of P83,000 to complete organization of the corporation.

Jan 15 Hired a clown to stand in front of the corporate office for 2 weeks and hand out pamphlets and candy to create goodwill for the new enterprise. Clown cost, P10,000; pamphlets and candy, P5,000.

April 1 Patented a newly developed process with costs as follows:

Legal fees to obtain patent P429,000

Patent application and licensing fees 63,500

Total P492,500

It is estimated that in 5 years other companies will have developed improved processes, making the Uranus Company process obsolete.

May 1 Acquired both a license to use a special type of container and a distinctive trademark to be printed on the container in exchange for 6,000 shares of Uranus's no-par ordinary shares selling for P50 per share. The license is worth twice as much as the trademark, both of which may be used for 5 years.

July 1 Constructed a shed for P1,310,000 to house prototypes of experimental models to be developed in future research projects.

Dec 31 Incurred salaries for an engineer and chemist involved in product development totaling P1,750,000 in 2010.

Required -

1. What is/are the intangible item/s based from the foregoing information that may be capitalized in accordance with IAS 38? Give also the initial carrying amount of this/these asset/s.

2. Compute the total amortization of intangible assets for 2020.

3. Compute the aggregate amount to be presented under the line item "Intangible Assets" in the December 31, 2020 Statement of Financial Position.

4. Compute the total amount related to research and development to be presented in the 2020 Statement of Comprehensive Income.