The Intanglble assets and goodwlll reported by Ivanhoe Corporatlon at December 31, 2020, follow:Copyrights (#1)$35,740Less: Accumulated amortlzatlon17.870$ 17,870Trademarks50,390Gంoరnll119,060Total$ 187,320A copyright (#1) was acqulred on January 1, 2019, and has a useful life of four years. The trademarks were acqulred on January 1,2017, and are expected to have an Indefinlte lfe. The company has a December 31 year end and prepares adjusting Journal entrlesannually.The following cash transactlons may have affected Intanglble assets and goodwll during 2o21:Jan.Pald S 6,920 In legal costs to successfully defend the trademarks agalnet Infringement by another company.JulyDeveloped a newproduct, Incurring 5 201,940 In research and S 49.500 In development costs with probablefueure benefits. The product Is expected to havea useful life of 18 years,1.Pald 5 55,670 to a popular hockey player to appear In commerdlals advertising the company's products. Thecommerclals will alrIn early September.Sept.1.Oct.Acculred another copyright (#2) forS159000 The new copyright has 2 Useful ife of sx years.Determined the falr value ofthe goodwll tobe 3 86.270. There was no Indication that the copyrights ortrademarkevvereImpaired,Dec.31 Prepare Journal entrles torecord the above transactlons. (List all debit entries before credit entries. Credit account titles areautomatically Indented whinghe amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titlesand enter 0for the amounts. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebit(To record research expense)(To record development costs)

Journal Entry The purpose of preparing the journal entry to enter the required transaction into both…

The following cash transactions may have affected Intanglble assets and goodwill during 2021: Jan. Pald $ 6,920 In legal costs to successfully defend the trademarks agalnst Infringement by another company. Developed a new product, Ineurring $ 201,940 In research and $ 49,500 In development costs with probable future benefits. The product Is expected to have a useful life of 18 years. July 1. Pald $ 55,670 toa popular hoekey player to appear In commerelals advertlsing the company's products. The commerclals wll alr In early September. Sept. Oct. Acqulred another copyright (#2) for $ 159,000. The new copyright has a useful Ilfe of sbx years. Determined the falr value of the goodwill to be 3 86.270. There was no Indicatlon that the copyrights or trademarks were Impaired. Dec. 31

The following cash transactions may have affected Intanglble assets and goodwill during 2021: Jan. Pald $ 6,920 In legal costs to successfully defend the trademarks agalnst Infringement by another company. Developed a new product, Ineurring $ 201,940 In research and $ 49,500 In development costs with probable future benefits. The product Is expected to have a useful life of 18 years. July 1. Pald $ 55,670 toa popular hoekey player to appear In commerelals advertlsing the company's products. The commerclals wll alr In early September. Sept. Oct. Acqulred another copyright (#2) for $ 159,000. The new copyright has a useful Ilfe of sbx years. Determined the falr value of the goodwill to be 3 86.270. There was no Indicatlon that the copyrights or trademarks were Impaired. Dec. 31

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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Presented below is information related to copyrights owned by Taylor Corporation atDecember 31, 2020.Carrying amount 7,000,000Expected future net cash flows 6,200,000Fair value 3,300,000Assume Taylor will continue to use this asset in the future. As of December 31, 2020,the copyrights have a remaining useful life of 5 years.Instructions(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020.(b) Prepare the journal entry to record amortization expense for 2021.(c) The fair value of the copyright at December 31, 2021 is $3,400,000. Prepare thejournal entry, under GAAP, necessary to record this increase in fair value.
The intangible assets section of Novak Corporation's balance sheet at December 31, 2025, is presented here. Patents ($78,000 cost less $7,800 amortization) Copyrights ($46,800 cost less $32,760 amortization) Total $70,200 14,040 $84,240 The patent was acquired in January 2025 and has a useful life of 10 years. The copyright was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2026. Jan. 2 Jan.-June Sept. 1 Oct. 1 Paid $60,840 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $299,000 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $26,400. Paid $52,000 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for…
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 journal entry to record the amortization expense on Dec 31, 2020
Presented below is information related to copyrights owned by Ivanhoe Corporation at December 31, 2020. Cost $5,640,000 Carrying amount 5,252,000 Expected future net cash flows 5,170,000 Fair value 3,360,000 Assume Ivanhoe will continue to use this asset in the future. As of December 31, 2020, the copyrights have a remaining useful life of 5 years. (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020
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 Credit
Carla Vista Company, organized in 2024, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025. 1/2/25 Purchased patent (9-year life) Purchase goodwill (indefinite life) Purchased franchise with 10-year life; expiration date 7/1/35 4/1/25 7/1/25 8/1/25 Payment of copyright (5-year life) 9/1/25 Research and development costs $394,200 348,000 428,000 153,600 218,000 $1,541,800
On May 1, 2019 , Al-Quds Co. purchased a trademark with a cost of $120000. The trademark is classified as an indefinite-life intangible asset At December 31 , 2019 and December 31, 2020, the following information is available for impairment testing 12/31/2019 12/31/2020 Recoverable amount $114,000 $116,000 The 2020 income statement will report: a. Revaluation surplus of $2,000 b. Impairment Loss of $6,000. C. Recovery of Impairment of $2,000 d. Recovery of Impairment of $6,000 « > A Moving to another question will save this response 11:46 AM 37°C Haze A E A ) 8/28/2021 to search DELL Hom PrtScr Delete F10 F11 F12 Insert F8 F9 F3 F4 F5 F6 F7 Num
a. A copyright purchased on January 1, 2020, for a cash cost of $15,70O. The copyright is expected to have a 10-year useful life to Springer. b. Goodwill of $77,000 from the purchase of the Hartford Company on July 1, 2019. CA patent purchased on January 1, 2019, for $56,000. The Inventor had registered the patent with the U.S. Patent and Trademark Office on January 1, 2015. Springer Intends to use the patent for its remaining life. Required: 1. Compute the amortization expense of each intangible for the year ended December 31, 2020. The company does not use contra- accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the Income statement for 2020. 2b. Show how the three intangible assets should be reported on the balance sheet for 2020. (Assume there has been no Impairment of goodwill.)
Sheridan Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020. 1/2/20 Purchased patent (8-year life) 4/1/20 Purchase goodwill (indefinite life) 7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30 Payment of copyright (5-year life) Research and development costs 8/1/20 9/1/20 (a1) $348,800 346,000 426,000 151,200 216,000 $1,488,000 Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (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
On 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.
answer needed ASAP Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2020. Cost $6,000,000 Carrying amount 5,200,000 Expected future net cash flows 4,700,000 Fair value 3,200,000 Assume Wamser will continue to use this asset in the future. As of December 31, 2020, the copyrights have a remaining useful life of 5 years. a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. b. Prepare the journal entry to record amortization expense for 2021. c. The fair value of the copyright at December 31, 2021 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
On July 1, Duffy Company purchased a copyright for $6363. The copyright has an estimated useful life of 3 years and Duffy uses straight-line amortization. How should the copyright be treated in Duffy's December 31 financial statements? Choose the closest answer. a. Capitalized as an intangible asset with a net balance of $6363 on the balance sheet. b. Expensed in the amount of $6363 on the income statement c. Capitalized as an intangible asset with a net balance of $5302 on the balance sheet. d. Capitalized as an intangible asset with a net balance of $4242 on the balance sheet.