Required: Prepare the journal entry to record the amortization expense on Dec 31, 2020
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Q: Yellow Company acquired a trademark for P10,000,000 from Orange Company on January 5, 2021. The…
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Q: Colgate Co. bought a trademark from Crest Corp. on May 1, 2019 for P300,000. Its unamortized cost on…
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Q: Steel Magnolia Incorporated purchased a trademark 7 years ago for $275,000. Steel Magnolia believed…
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Q: On May 1, 2019, Al-Quds Co. purchased a trademark with a cost of $120000. The trademark is…
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A: Given: General Products successfully defended these trademarks at a legal cost of $45,000. The new…
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A: Introduction:- Journal entry is the first stage of accounting process. which is used to record…
Q: Sunland Co. bought a patent from Carla Vista Corp. on January 1, 2021, for $918000. An independent…
A: Intangible assets: These are long-term assets having no physical existence. However, the benefits…
Q: On June 2, 2021, Tabitha Co. purchased a franchise for $589,000 by signing a five-year contract. At…
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Q: On January 1, 2018, Laica Company purchased a patent from an original patentee for P2,400,000. The…
A: Intangible Assets Example for Intangible assets are goodwill, patent, Trademark, copyright etc.…
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A: Compute the annual amortization expense.
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A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…
Q: A. Muharraq Industrial Co. purchased a Tradename for $ 240,000 on July 1, 2021. The Trademname is…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: On January 1, 2021, ABC Company purchased P600,000, a trademark with an estimated useful life of 16…
A: January 1, 2021 : (1) Purchase Cost of Trademark = P 600,000 (2) Estimated Useful Life = 16 years…
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Q: On September 1, 2019, Jordan, Inc. acquired a patent for $600,000. The patent has 16 years remaining…
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Q: January 1, 2020, Cecilia Company purchased a patent from an original patentee for P2,400,000. The…
A: If a competing patent is acquired to protect an original patent. The cost of the new patent and the…
Q: the patent is 8 years. During the year 2021, the company determined that the economic life of the…
A: The amortization expense is charged on intangible assets of the business.
Q: On January 1, 2021, ABC Company purchased P600,000, a trademark with an estimated useful life of 16…
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A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: In Colgate's December 31, 2019, Financial Position what amount should the trademark be reported?
A: Note: Assumed that Legal life of Trademark is 10 Years. Given: Cost of Trademark P300,000 Reporting…
Q: On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the…
A: Amortization of the Patent: Amortization of the Patent is the tactic in which the cost of the patent…
Q: Hepburn Company bought a copyright for $120,000 on January 1, 2018, at which time the copyright had…
A: In straight line depreciation we assume there is uniform annual depreciation of assets and it is…
Q: On January 1, 2019, the account balances of Acelle Company showed patent cost of P1,920,000 and…
A: Intangible assets: - Intangible assets are those assets of the company which cannot be touched or…
Q: Sage Hill Industries has the following patents on its December 31, 2019, balance sheet. Patent…
A: A) Calculate the total carrying amount of patent on December 31, 2019.
Q: In early January 2019, Outkast Corporation applied for a trade name, incurring legal costs of…
A:
Q: ylor Swift Corporation purchases a patent from Salmon Company on January 1, 2020, for $54,000. The…
A: Patent is a right that is exclusively granted by the Government to an individual or firm to process…
Q: Marigold Company purchases a patent for $504,000 on January 2, 2022. Its estimated useful life is 18…
A: Amortization expense = Cost of patent/Useful life
Q: Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…
A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…
Q: Crane Company purchased a patent on January 1, 2020 for $568000. The patent had a remaining useful…
A: Amortization: Amortization can be defined as the process in which the cost of the intangible assets…
Q: e of th
A: Given: Jordan Company for P120,000 Trademark totaling P30,000
Q: R Company registered a patent on January 1, 2015. P Company purchased the patent from R Company for…
A: Note: As per relevant accounting standard, Legal life of patent is 20 years. It means patent will be…
Q: On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued…
A: Solution:- computation of the increase or (decrease) of the Goodwill in December 31, 2022 as…
Q: In early January 2020, Sunland Corporation applied for and received approval for a trade name,…
A: Given, Total Legal fee paid in Early January 2020: $ 44800: Applied and received approval for…
Q: On January 2, 2021, Harlan Company purchased a patent for $48,000. The patent has an estimated…
A: A patent appears to be a legal privilege awarded by a sovereign authority to an inventor. In…
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A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to a…
A: Formula: Total amortization deduction = Amortization for patent + Amortization for Goodwill
Q: On May 1, 2019, Al-Quds Co, purchased a trademark with a cost of $120000, The trademark is…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: ompany acquired a trademark for P10 million from Bangkok Trading on January 2, 2022. The trademark…
A: Trademarks are acquired at some cost but these are to be amortized in the accounting over the life…
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A: Patents is a form of intangible asset which needs to be amortised over the useful life of the…
A. Manam Co purchased a Trademark for $ 160,000 on October 1, 2020. The Trademark is legally used for 10-year period.
Required: Prepare the
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- Mystic Pizza Company purchased a patent from Prime Pizza Plus on January 1, 2019, for 72,000. The patent has a remaining legal life of 9 years. Prepare the journal entries to record the acquisition and the amortization for 2019, assuming Mystic Pizza amortizes its patents using the straight-line method over the life of the asset.On September 1, 2019, Jordan, Inc. acquired a patent for $600,000. The patent has 16 years remaining in its legal life. However, Jordan, Inc. expects the patent's technology to have a useful life of 8 years. Prepare the journal entries to record the acquisition of the patent and the amortization expense for 2019. Date Account Debit CreditB. January 17, 2020, Roddick Company incurred $172,000 in successfully defending one of its patents in an infringement suit. The patent expires during December 2023. Required: Prepare the journal entry needed at the date of the transaction and on December 31, 2020 to record any resultant amortization.
- Yellow Company acquired a trademark for P10,000,000 from Orange Company on January 5, 2021. The trademark is carried in the accounting records of Orange at an amortized cost of P7.6 million. Yellow Company's consultant has estimated that the useful life of the trademark to be indefinite. What amount should Yellow report as accumulated amortization at Dec. 31, 2021?On January 1, 2019, MLW Company purchased a copyright for $1,000,000, having an estimated useful life of 16 years. In January 2023, MLW paid $150,000 for legal fees in a successful defense of the copyright. What should be the amount of copyright amortization expense for the year ended December 31, 2023?On January 1, 2019, Sandhill Corp. purchased a trademark for $352950, which had an estimated useful life of 15 years. In January 2023, Sandhill paid $44990 for legal fees in a successful defence of the trademark. The amortization expense for this asset for calendar 2023, should be $17370. $20369. $27620,. $0
- Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2019, for $55,000. The patent has a remaining legal life of 16 years. Celine Dion feels the patent will be useful for 11 years. Prepare Celine Dion’s journal entries to record the purchase of the patent and 2019 amortization.On January 1, 2021, Ebasan reported patent cost of P1,920,000 and related accumulated amortization of P240,000. The patent was purchased on January 1, 2019 at which date the remaining legal life was 16 years. On January 1, 2021, the useful life of the patent was determined to be only & years from the date of acquisition. On January 1, 2021, Ebasan paid P800,000, of which three-fourths was for a trademark and one-fourth was for the other entity's agreement not to compete for a 5-year period in the line of business covered by the trademark. The entity considered the life of the trademark indefinite. Moreover, the entity agreed to pay P50,000 to the other entity as consulting fee each year for 5 years payable every January 1. What is the total carrying amount of intangible assets on December 31, 2021?On January 1, 2019, the account balances of Acelle Company showed patent cost of P1,920,000 and related accumulated amortization of P240,000. The patent was purchased on January 1, 2017 at which date the remaining legal life was 16 years. On January 1, 2020, the useful life of the patent was determined to be only 8 years from the date of acquisition. On January 1, 2020, Acelle Company paid P800,000, of which three-fourths was for a trademark, and one-fourth was for the other entity's agreement not to compete for a five-year period in the line of business covered by the trademark. Acelle Company considers the life of the trademark indefinite. Moreso, Acelle Company agreed to pay P50,000 to the other entity as consulting fee each year for 5 years payable every January 1. What is the amortization of intangible assets for 2020?
- Presented below is information related to copyrights owned by Carla Vista Company at December 31, 2020. Cost $8,630,000 Carrying amount 4,480,000 Expected future net cash flows 4,140,000 Fair value 3,330,000 Assume that Carla Vista Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Prepare the journal entry to record amortization expense for 2021 related to the copyrights.ylor Swift Corporation purchases a patent from Salmon Company on January 1, 2020, for $54,000. The patent has a remaining legal life of 16 years. Taylor Swift feels the patent will be useful for 10 years. Prepare Taylor Swift's journal entries to record the purchase of the patent and 2020 amortization.On January 1, 2019, Jericho Company purchased a patent for P7,140,000. The patent is being amortized over the remaining legal life of 15 years expiring on January 1, 2034. During 2022, the entity determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. What amount should be reported for the patent, net of accumulated amortization, on December 31, 2022? A. 4,282,000 B. 4,896,000 C. 5,050,000 D. 5,236,000
