On January 1, 2024, Lanny, Inc. purchased a copyright for $410,000 cash. The copyright is expected to have a useful life of 25 years. The copyright has no residual value. What is the value of the copyright on the books at the end of 2028? O A) $16,400 B) $328,000 C) $164,000 D) $82,000
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- Calico Inc. purchased a patent on a new drug. The patent cost $21,000. The patent has a life of twenty years, but Calico only expects to be able to sell the drug for fifteen years. Calculate the amortization expense and record the journal for the first-year expense.Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Calico Inc. purchased a patent on a new drug it created. The patent cost $12,000. The patent has a life of twenty years, but Calico expects to be able to sell the drug for fifty years. Calculate the amortization expense and record the journal for the first years expense.
- For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.Warriors Productions recently purchased a copyright. Although the copyright is expected to last a minimum of twenty-five years, the chief executive officer of the company believes this B-list movie will only be useful for the next fifteen years. Calculate the amortization expense and record the journal for the first years expense. The total cost of the copyright was $15,000.On January 1, 2022, Irwin company purchased the copyright to quick computer tutorials for $120,000. it is estimated that the copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2022 would be. a. $0 b. $24,000 c. $60,000 d. $120,000
- Prepare the journal entry to record the impairment of the asset at December 31, 2025. The company does not use accumulated amortization accounts. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) Account Titles and Explanation Loss on Impairment (b) Copyrights eTextbook and Media List of Accounts Debit Account Titles and Explanation 990000 Debit Credit Prepare the journal entry to record amortization expense for 2026 related to the copyrights. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) 990000 Attempts: 3 of 4 used CreditOn July 1, 2022, Oriole Company purchased the copyright to Cheyenne Corp. for $260000. It is estimated that the copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2022 would be $26000. $52000. $24687. $48100.On January 1, 2020, Ella Company acquired the following intangible assets: • A trademark for P2,000,000. The trademark has 8 years remaining in its legal life. It is anticipated that the trademark will be renewed in the future, indefinitely, without a problem. • A patent for P4,000,000. Because of market condition, it is expected that the patent will have economic life for just 5 years, although the remaining legal life is 10 years. On December 31, 2020, the intangible assets are assessed for impairment. Because of a decline in the economy, the trademark is expected to generate cash flows of just P120,000 per year. The useful life of the trademark still extends beyond the foreseeable horizon. The cash flows expected to be generated by the patent are P500,000 annually for each of the next four years. The appropriate discount rate for all intangible assets is 8%. Ella Company shall recognized a total impairment loss in 2020 at a. P2,045,000 b. P1,545,000 c. P2,845,000 d. P1,980,000
- On January 1, 2020, Ella Company acquired the following intangible assets:• A trademark for P2,000,000. The trademark has 8 years remaining in its legal life. It is anticipated that the trademark will be renewed in the future, indefinitely, without a problem.• A patent for P4,000,000. Because of market condition, it is expected that the patent will have economic life for just 5 years, although the remaining legal life is 10 years.On December 31, 2020, the intangible assets are assessed for impairment. Because of a decline in the economy, the trademark is expected to generate cash flows of just P120,000 per year. The useful life of the trademark still extends beyond the foreseeable horizon. The cash flows expected to be generated by the patent are P500,000 annually for each of the next four years.The appropriate discount rate for all intangible assets is 8%. Ella Company shall recognized a total impairment loss in 2020 at If the entity is an SME, what is the carrying value of the…On January 1, 2020, Ella Company acquired the following intangible assets: • A trademark for P2,000,000. The trademark has 8 years remaining in its legal life. It is anticipated that the trademark will be renewed in the future, indefinitely, without a problem. • A patent for P4,000,000. Because of market condition, it is expected that the patent will have economic life for just 5 years, although the remaining legal life is 10 years. On December 31, 2020, the intangible assets are assessed for impairment. Because of a decline in the economy, the trademark is expected to generate cash flows of just P120,000 per year. The useful life of the trademark still extends beyond the foreseeable horizon. The cash flows expected to be generated by the patent are P500,000 annually for each of the next four years. The appropriate discount rate for all intangible assets is 8%. Ella Company shall recognized a total impairment loss in 2020 at a. P2,045,000 b. P1,545,000 c. P2,845,000 d. P1,980,000…n January 1, 2020, Caleb Co acquired the following intangible assets: A trademark for 2,000,000. The trademark has 8 years remaining in its legal life. It is anticipated that the trademark will be renewed in the future, indefinitely, without a problem. A patent for 4,000,000. Because of market conditions, it is expected that the patent will have an economic life of just 5 years, although the remaining life is 10 years. On December 31, 2020, the intangible assets are assessed for impairment. Because of a decline in the economy, the trademark is expected to generate cash flows of just 120,000 per year. The useful life of the trademark still extends beyond the foreseeable horizon. The cashflows expected to be generated by the patent are 500,000 annually for each of the next 4 years. The appropriate discount rate for all intangible assets is 8%. The present value of an ordinary annuity of 1 at 8% for four periods is 3.31. What total amount should be recognized as impairment…