19 Amco Co carries out research and development. In the year ended 30 June 20X5 Amco Co incurred total costs in relation to project X of $750,000, spending the same amount each month up to 30 April 20X5, when the project was completed. The product produced by the project went on sale from 31 May 20X5. The project had been confirmed as feasible on 1 January 20X5, and the product produced by the project was expected to have a useful life of five years. What is the carrying amount of the development expenditure asset as at 30 June 20X5? A $295,000 B $725,000 C $300,000 D $0 20. Sybil has acquired a subsidiary Basil in the current year. Basil has a brand which has been reliably valued by Sybil at $500,000, and a customer list which Sybil has been unable to value. Which of these describes how Sybil should treat these intangible assets of Basil in their consolidated Financial Statements? A They should be included in goodwill. B The brand should be capitalised as a separate intangible asset, whereas the customer list should be included within goodwill. C Both the brand and the customer list should be capitalised as separate intangible assets. D The customer list should be capitalised as a separate intangible asset, whereas the brand should be included within goodwill. give me the correct options

(a)Charlton Ltd is considering whether to invest $7,500 in a five year marketing project. Youare the project manager of this project and you have just gathered the following data andprojections relevant to this project:(1) The unit selling price shall be $10,(2) Quantity sold for year 1 is 1,000. It is expected that the quantity sold will increase by 100units per year.(3) The expected unit variable cost (marketing and overhead) is $5(4) The projected fixed costs are $5,000 per year. This will include annual depreciation of$1,500 on the equipment used in this project. No salvage value is expected.(5) The corporate income tax rate applicable for this project is 20%.The management does not want to use accounting ratios (for example, the return oninvestment) to evaluate the project. The required rate of return of this project is 10% peryear.Required:Using the Net Present Value, Internal Rate of Return and Payback period methods, write areport to the management stating clearly whether the project should be accepted or not.(Total 15 marks)(b)“Dividend policy can be used to maximise the wealth position of equity holders.”Critically evaluate the above statement with reference to the determinants of dividendpolicy.(35 marks)In this section students should demonstrate an understanding and knowledge of thetheoretical aspects that underpin dividend decisions. The evaluation should be supportedwith relevant, contemporary, academic research that has been undertaken within this fieldand should be referenced accordingly. Ensure the response does not become overlydescriptive within its approach, rather attempts to incorporate a critical perspective integratingrelevant academic literature, allowing logical conclusions to be proposed.Total for Question 1 – 50 marks

ABC Company purchases a patent from XYZ Company for the price of ₱250,000 and incurs legal and consulting fees related to the purchase in the amounts of ₱60,000 and ₱40,000, respectively. The patents remaining life is 15 years, but because of the market competition, its useful life is estimated to be only 10 years.What is the total acquisition cost of the patent?

The Millers are considering a $200,000 expansion for their existing retail outlet. The expansion would generate $35,000 in cash each year over the next 10 years.  Assuming that CompuTech’s weighted average cost of capital is 8%, calculate the project’s net present value.

17. Which of the following could be classified as development expenditure in M’s statement of financial position as at 31 March 20Y0 according to IAS 38 Intangible Assets? A $120,000 spent on developing a prototype and testing a new type of propulsion system. The project needs further work on it as the system is currently not viable. B A payment of $50,000 to a local university’s engineering faculty to research new environmentally friendly building techniques. C $35,000 developing an electric bicycle. This is near completion and the product will be launched soon. As this project is first of its kind it is expected to make a loss. D $65,000 developing a special type of new packaging for a new energy‐efficient light bulb. The packaging is expected to reduce M’s distribution costs by $35,000 a year. 18. Which TWO of the following factors are reasons why key staff cannot be capitalised as an intangible asset by an entity? A They do not provide expected future economic benefits B They cannot be controlled by an entity C Their value cannot be measured reliably D They are not separable from the business as a whol

Entity Alpha acquires equipment on January 1, 2021. Information on costs is as follows:Purchase Price, gross of trade discount         1,000,000Trade discount available              10,000Freight Costs              20,000Testing Costs              30,000Net disposal proceeds of samples generated during testing                 5,000How much is the initial cost of the equipment?  The equipment has an estimated useful life of 10 years and a residual value of ₱200,000. Entity A uses the straight line method of depreciation. How much is the carrying amount of the equipment on December 31, 2023?