Mikkeli OY acquired a brand name with an indefinite life in 2015 for 40,000 markkas. At...

Mikkeli OY acquired a brand name with an indefinite life in 2015 for 40,000 markkas. At December 31, 2017, the brand name could be sold for 35,000 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 42,000 markkas, and the present value of this amount is 34,000 markkas. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Required: Prepare journal entries for this brand name for the year ending December 31, 2017, under (1) IFRS and (2) U.S. GAAP. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017 and December 31, 2018 conversion worksheet to convert IFRS balances to U.S. GAAP.

Solutions

Expert Solution

Answer is attached below

Also rate my answer

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Mikkeli OY acquired a brand name with an indefinite life in 2015 for 43,200 markkas. At...

Mikkeli OY acquired a brand name with an indefinite life in 2015 for 43,200 markkas. At December 31, 2017, the brand name could be sold for 35,200 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 45,500 markkas, and the present value of this amount is 34,200 markkas. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP...

Mikkeli OY acquired a brand name with an indefinite life in 2015 for 43,000 markkas. At...

Mikkeli OY acquired a brand name with an indefinite life in 2015 for 43,000 markkas. At December 31, 2017, the brand name could be sold for 37,600 markkas, with zero costs to sell. Expected cash flows from the continued use of the brand are 45,200 markkas, and the present value of this amount is 36,600 markkas. Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP...

The mean life span of a brand name tire is 50,000 miles. Assume that the life...

The mean life span of a brand name tire is 50,000 miles. Assume that the life spans of the tires are normally distributed, and the population standard deviation is 800 miles. a. If you select one tire, what is the probability that its life span is less than 48,500 miles? b. If you select 100 tires, what is the probability that their mean life span is more than 50,200miles? c. What is the distribution of the sample mean in part...

The NGD Company has a trademark that it expects to have an indefinite life with a...

The NGD Company has a trademark that it expects to have an indefinite life with a carrying value of $1,500,000. As part of its 2016 annual impairment testing, NGD decides not to use the qualitative assessment option under U.S. GAAP and moves forward to performing its quantitative assessment impairment testing for both U.S. GAAP and IFRS. In this process, it is determined that the fair value of the trademark is $1,200,000. The present value of the future cash flows is...

Evaluate the brand name, BioLite, according to the characteristics of a good brand name.

What is a brand? What is a brand name? What is meant by brand equity

Carla Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5...

Carla Cole Inc. acquired the following assets in January of 2015. Equipment, estimated service life, 5 years; salvage value, $16,000 $559,000 Building, estimated service life, 30 years; no salvage value $675,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2018, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage...

What is the difference between limited-life versus indefinite-life intangible assets? please put some examples

Equipment was acquired at the beginning of the year at a cost of $40,000. The equipment...

Equipment was acquired at the beginning of the year at a cost of $40,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $780. a. What was the depreciation for the first year? b. Assuming the equipment was sold at the end of year 2 for $9,240, determine the gain or loss on the sale of the equipment. $fill in the blank c. Journalize the entry...

what are different brand name strategies

Subjects