Current Attempt in Progress In early January 2019, Ayayai Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Ayayai incurred $7,200 of legal fees in a successful defense of its trade name. 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. (b) 2019 amortization $ 1600 12/31/19 book value $ 14400 2020 amortization $ 2400 12/31/20 book value $ 19200 eTextbook and Media Attempts: 1 of 3 used Your answer is correct. Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Ayayai determines that the trade name will provide no future benefits beyond December 31, 2023. (c) 2020 amortization $ 5400 12/31/20 book value $ 16200 eTextbook and Media Your answer is incorrect. Attempts: 1 of 3 used 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, Ayayai determines that the fair value of the trade name is $14,400. Estimated total future cash flows from the trade name is $15,400 on January 3, 2021. 2021 amortization $ 1940 12/31/21 book value $ 13580
Current Attempt in Progress In early January 2019, Ayayai Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Ayayai incurred $7,200 of legal fees in a successful defense of its trade name. 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. (b) 2019 amortization $ 1600 12/31/19 book value $ 14400 2020 amortization $ 2400 12/31/20 book value $ 19200 eTextbook and Media Attempts: 1 of 3 used Your answer is correct. Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Ayayai determines that the trade name will provide no future benefits beyond December 31, 2023. (c) 2020 amortization $ 5400 12/31/20 book value $ 16200 eTextbook and Media Your answer is incorrect. Attempts: 1 of 3 used 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, Ayayai determines that the fair value of the trade name is $14,400. Estimated total future cash flows from the trade name is $15,400 on January 3, 2021. 2021 amortization $ 1940 12/31/21 book value $ 13580
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
Related questions
Question
am.123.
Transcribed Image Text:Current Attempt in Progress
In early January 2019, Ayayai Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Ayayai incurred
$7,200 of legal fees in a successful defense of its trade name.
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.
(b)
2019 amortization
$
1600
12/31/19 book value $
14400
2020 amortization
$
2400
12/31/20 book value
$
19200
eTextbook and Media
Attempts: 1 of 3 used
Your answer is correct.
Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Ayayai determines that
the trade name will provide no future benefits beyond December 31, 2023.
(c)
2020 amortization
$
5400
12/31/20 book value $
16200
eTextbook and Media
Your answer is incorrect.
Attempts: 1 of 3 used
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, Ayayai determines that the fair value of the trade name is $14,400. Estimated total
future cash flows from the trade name is $15,400 on January 3, 2021.
2021 amortization
$
1940
12/31/21 book value
$
13580
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