In early January 2024, Cheyenne Corporation applied for a trade name, incurring legal costs of $16,000. In January 2025, Cheyenne incurred $8,100 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization 12/31/24 book value 2025 amortization tA $ LA $ 12/31/25 book value $ tA

In early January 2024, Cheyenne Corporation applied for a trade name, incurring legal costs of $16,000. In January 2025, Cheyenne incurred $8,100 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization 12/31/24 book value 2025 amortization tA $ LA $ 12/31/25 book value $ tA

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 38P

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Petes Petroleum, Inc., an SEC registrant with a calendar year-end, is in the business of constructing and operating offs] lore oil platforms. Petes Petroleum is required legally to dismantle and remove the platforms at the end of their useful lives, which is estimated to be 10 years. On January 1, 2019, Pete constructed and began operating an offshore oil platform off the coast of Brazil. The total capitalized cost to construct the platform was 3,700,000. In addition, while the future cost of dismantling the oil platform is difficult to estimate, Pete believes there is a 40% chance that the future cost will be 1,425,000, a 40% chance it will be 1,650,000, and a 20% chance that it will cost 2,125,000. The appropriate discount rate is 12%, and Pete uses the straight-line method of depreciation. Required: 1. Prepare the journal entries that Pete should record in 2019 related to the oil platform. 2. Prepare an amortization schedule for the asset retirement obligation. 3. Next Level Prepare a table showing the effect of accounting for the asset retirement obligation on assets, liabilities, shareholders equity, and net income relative to accounting for the associated costs at the end of the assets service life when the expenditure is made.
In early January 2024, Bramble Corporation applied for a trade name, incurring legal costs of $16,200. In January 2025, Bramble incurred $7,200 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization $ 12/31/24 book value $ 2025 amortization $ 12/31/25 book value $
In early January 2024, Ayayai Corporation applied for a trade name, incurring legal costs of $15,800. In January 2025, Ayayai incurred $7,200 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization 12/31/24 book value 2025 amortization 12/31/25 book value $ LA LA $ of SUPPORT
In early January 2019, Outkast Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Outkast incurred $7,800 of legal fees in a successful defense of its trade name. Instructions a. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years. b. Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Outkast determines that the trade name will provide no future benefits beyond December 31, 2023. c. Ignoring the response for part .b., compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Outkast determines that the fair value of the trade name is $15,000. Estimated total future cash flows from the trade name is $16,000 on January 3, 2021.
In early January 2024, Monty Corporation applied for a trade name, incurring legal costs of $16,800. In January 2025, Monty incurred $7,200 of legal fees in a successful defense of its trade name. (a) Your answer is correct. Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization (b) 12/31/24 book value 2025 amortization Question Part Score $ $ 12/31/25 book value $ $ eTextbook and Media 2025 amortization Your answer is correct. $ 1680 12/31/25 book value $ 15120 2480 Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025, Monty determines that the trade name will provide no future benefits beyond December 31, 2028. 19840 5580 Attempts: 1 of 4 used 16740 2/2
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In early January 2019, Sheffield Corporation applied for a trade name, incurring legal costs of $15,800. In January 2020, Sheffield incurred $8,100 of legal fees in a successful defense of its trade name. (a) Your Answer Correct Answer Your answer is correct. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.
In early January 2020, Pharoah Corporation applied for and received approval for a trade name, incurring legal costs of $46,400. In early January 2021, Pharoah incurred $24,000 in legal fees in a successful defence of its trade name. Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount at December 31, 2021, if the company amortizes the trade name over its 16-year legal life. (Round answers to O decimal places, e.g. 5,275.) Amortization amount Carrying amount Amortization amount tA Carrying amount $ +A $ CA 2020 Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount at December 31, 2021, if the company amortizes the trade name over a useful life of 5 years. CA ta 2020 $ LA $ LA $ 2021 LA 2021
5. Barkley Corp. obtained a tradename in January 2024, incurring legal costs of $72,000. The company amortizes the tradename over 8 years using the straight-line method. Barkley successfully defended its tradename in January 2025, incurring $19,600 in legal fees. At the beginning of 2026, based on new marketing research, Barkley determines that the fair value of the tradename is $60,000. Estimated future net cash flows from the tradename are $64,000 on January 4, 2026. Instructions Prepare the necessary journal entries for the years ending December 31, 2024, 2025, and 2026. Show all computations. misami arb broup qual
. On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. RequiredCompute the ending carrying value of the tradename for 2022 and 2023. Should the company amortize the tradename? *Note: Show the solution step by step with formula
In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of P160,000. Based on new market research, HUMID determines that the market value of the trade name is P120,000. In January 2021, HUMID incurred P7,800 of legal fees in a successful defense of its trade name. Trade name should be amortized based on legal life. What is the cost of Tradename? P120,000 P160,000 P280,000 O P167,800
Ayayai Corporation purchases a patent from Blossom Company on January 1, 2025, for $63,000. The patent has a remaining legal life of 14 years. Ayayai estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Ayayai's journal entries to record the purchase of the patent and 2025 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of patents) (To record amortization of patents) Debit Credit