On January 2, 2016, David Corporation purchased a patent for $500,000. The remaining legal life is 12 years, but the company estimated that the patent will be useful only for eight years. In January 2018, the company incurred legal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Required: Prepare journal entries related to the patent for 2016, 2017, and 2018.
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On January 2, 2016, David Corporation purchased a patent for $500,000. The remaining legal life is 12 years, but the company estimated that the patent will be useful only for eight years. In January 2018, the company incurred legal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Required: Prepare
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- On January 2, 2018, David Corporation purchased a patent for $500,000. The remaining legal life is 12 years, butthe company estimated that the patent will be useful only for eight years. In January 2020, the company incurredlegal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not changethe company’s estimate of useful life.Required:Prepare journal entries related to the patent for 2018, 2019, and 2020.On January 2, 2024, David Corporation purchased a patent for $510,000. The remaining legal life is 10 years, but the company estimated that the patent will be useful only for six years. In January 2026, the company incurred legal fees of $60,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Required: Prepare journal entries related to the patent for 2024, 2025, and 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 Date January 02, 2024 3 Record the purchase of the patent. Note: Enter debits before credits. Record entry 4 5 General Journal Clear entry Debit Credit View general JournalVirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the time of the purchase, the patent had a remaining legal life of 10 years. In January, 2020, Maskless spent $100,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 3 years. VirusGo's year-end is December 31. By how much is amortization expense debited in 2017? By how much is amortization expense debited in 2020? What is the net carrying value of the patent on December 31, 2019?…
- On January 2, 2021, David Corporation purchased a patent for $500,000. The remaining legal life is 12 years, but the company estimated that the patent will be useful only for eight years. In January 2023, the company incurred legal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Required:Prepare journal entries related to the patent for 2021, 2022, and 2023. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the purchase of the patent. Record amortization of the patent for the year 2021. Record amortization of the patent for the year 2022. Record costs of successfully defending the patent infringement suit. Record amortization of the patent for the year 2023.VirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the time of the purchase, the patent had a remaining legal life of 10 years. In January, 2020, Maskless spent $100,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 3 years. VirusGo's year-end is December 31. By how much is amortization expense debited in 2017? By how much is amortization expense debited in 2020? What is the net carrying value of the patent on December 31, 2019?…Belkin Plc purchased a patent for $135,000 on September 1, 2016. It had a useful life of 10 years. On January 1, 2018, Belkin spent $33,000 to successfully defend the patent in a lawsuit. Belkin feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2018?
- During 2017, Summer Company spent P500,000 for the research and development of its patent. On January 1, 2018, the company paid P120,000 to apply for and obtain right to the patent. The useful life of the patent is 10 years.On January 1, 2019, Summer Company purchased a new patent for P1,200,000 which is expected to prolong the life of the original patent by six years. On December 31, 2020, a competitor obtained rights to a patent that rendered Summer Company's patent obsolete.Required: Prepare all entries relative to the patent from 2017 through 2020.Flounder Corporation purchases a patent from Shamrock Inc. on July 1, 2017, for $260,000. The patent has a remaining legal life of 9 years. Flounder estimates the patent will have a useful life of 4 years, based on expected product innovations in the market. Prepare Flounder's journal entries to record the purchase of the patent and 2017 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.) Account Titles and Explanation Debit Credit (To record purchase of patents) (To record amortization of patents)Blue Incorotation has a patent that will expire at the end of 2025. They spent $100,000 to successfully prosecute an infringement suit on July 1, 2018. The carrying value of this patent before the litigation is $300,000. Write journal entries to record for these activities.
- On January 3, 2012, the July Company spent P196,000 to apply for and obtain a patent on a newly developed product. The patent had an estimated useful life of 10 years. At the beginning of 2014, the company spent P28,000 in successfully prosecuting an attempted infringement of the patent.. At the beginning of 2017, the company purchased for P60,000 a patent that was expected to prolong the life of its original patent by 5 years. On July 1, 2020, a competitor obtained rights to a patent that made the company's patent obsolete. REQUIRED: Prepare journal entries to record the transactions relative to the patents from January 3, 2012 to July 1, 2020, inclusive.The Western Company, a company that follows IFRS, provided you with the following information about a number of transactions that took place in 2020: On January 1, 2020 Western acquired a patent for $45,000 cash. The patent expires on January 1, 2028, but the company determined that it will generate future benefits for 6 years from the date of acquisition. During 2022, the total useful life of the patent was revised to 4 years. During March 2020, The Wester Company invested $120,000 in research costs about a new product that it aims to develop in 2021. The amount was paid in cash. The Western Company estimates that its internal goodwill is worth $980,000 in July 2020. Required- Prepare the journal entries related to the patent from January 1, 2020 to December 31, 2022. Prepare the journal entries for 2 and 3. If no journal entry is required, justify why.On January 1, 2021, The Donut Stop purchased a patent for $84,000. At that time, the remaining legal life was 15 years, but the company estimated the patent would be useful for only five more years. In late December 2022, the company incurred legal fees of $22,000 in successfully defending the patent in an infringement suit. The successful defense did not change the company's estimate of the patent’s useful life. The Donut Stop's year-end is December 31. Record amortization in 2022 (for simplicity, assume no amortization for the legal fees is recorded in 2022 because the expenditures did not occur until late December).