Cullumber Company has a December 31 fiscal year end. Selected information follows for Cullumber Company for two independentsituations as at December 31, 2024:1. Cullumber purchased a patent from Marin Inc. for $471,000 on January 1, 2021. The patent expires on January 1, 2029.Cullumber has been amortizing it over its legal life. During 2024, Cullumber determined that the patent's economic benefitswould not last longer than six years from the date of acquisition.2.Cullumber has a trademark that had been purchased in 2017 for $265,000. During 2023, the company spent $50,000 on alawsuit that successfully defended the trademark. On December 31, 2024, it was assessed for impairment and therecoverable amount was determined to be $279,000.For each of these assets, determine what, if anything, will be recorded on Cullumber's 2024 income statement. Be specific aboutthe account name and the amount. (Round answers to O decimal places, e.g. 5,276.)Cullumber CompanyIncome Statement (Partial)$I

The revenues, expenses, and profitability of a company are shown on an income statement over time.…

For each of these assets, determine what, if anything, will be recorded on Cullumber's 2024 income statement. Be specific the account name and the amount. (Round answers to O decimal places, e.g. 5,276.) Cullumber Company Income Statement (Partial)

For each of these assets, determine what, if anything, will be recorded on Cullumber's 2024 income statement. Be specific the account name and the amount. (Round answers to O decimal places, e.g. 5,276.) Cullumber Company Income Statement (Partial)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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Question

Cullumber Company has a December 31 fiscal year end. Selected information follows for Cullumber Company for two independent
situations as at December 31, 2024:
1. Cullumber purchased a patent from Marin Inc. for $471,000 on January 1, 2021. The patent expires on January 1, 2029.
Cullumber has been amortizing it over its legal life. During 2024, Cullumber determined that the patent's economic benefits
would not last longer than six years from the date of acquisition.
2.
Cullumber has a trademark that had been purchased in 2017 for $265,000. During 2023, the company spent $50,000 on a
lawsuit that successfully defended the trademark. On December 31, 2024, it was assessed for impairment and the
recoverable amount was determined to be $279,000.
For each of these assets, determine what, if anything, will be recorded on Cullumber's 2024 income statement. Be specific about
the account name and the amount. (Round answers to O decimal places, e.g. 5,276.)
Cullumber Company
Income Statement (Partial)
$
I

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