Company B has acquired a trademarkrelating to the introduction of a newmanufacturing process. The costsincurred were as follows: 1. Cost oftrademark, 150,000 2. Expenditureon promoting the new product,5,000 3. Employee benefits relatingto the testing of the properfunctioning of the new process,25,000 According to IAS 38 -'Intangible assets', what is the totalcost that can be capitalised as anintangible fixed asset in respect of thenew process? A. 150,000 B. 155,000 C. 175,000 D. 180,000

Intangible assets: Intangible assets are those which does not have any physical existence but have…

Answered: Company B has acquired a t relating to…

Company B has acquired a t relating to the introduction c manufacturing process. The incurred were as follows: 1. trademark, 150,000 2. Expe on promoting the new prod

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Company B has acquired a trademark
relating to the introduction of a new
manufacturing process. The costs
incurred were as follows: 1. Cost of
trademark, 150,000 2. Expenditure
on promoting the new product,
5,000 3. Employee benefits relating
to the testing of the proper
functioning of the new process,
25,000 According to IAS 38 -
'Intangible assets', what is the total
cost that can be capitalised as an
intangible fixed asset in respect of the
new process? A. 150,000 B
. 155,000 C. 175,000 D. 180,000

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