Ignoring the response for part (b), compute the 2026 amortization and the 12/31/26 book value, assuming that at the beginningof 2026, based on new market research, Monty determines that the fair value of the trade name is $15,120. Estimated totalfuture cash flows from the trade name is $16,120 on January 3, 2026.2026 amortization12/31/26 book value$$ In early January 2024, Monty Corporation applied for a trade name, incurring legal costs of $16,800. In January 2025, Monty incurred$7,200 of legal fees in a successful defense of its trade name.(a)Your answer is correct.Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes thetrade name over 10 years. (Round answers to O decimal places, e.g. 5,125.)2024 amortization(b)12/31/24 book value2025 amortizationQuestion Part Score$$12/31/25 book value $$eTextbook and Media2025 amortizationYour answer is correct.$168012/31/25 book value $151202480Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025, Monty determines thatthe trade name will provide no future benefits beyond December 31, 2028.198405580Attempts: 1 of 4 used167402/2

Intangible assets are non-physical assets that have no inherent value and cannot be touched or seen.…

Answered: In early January 2024, Monty…

In early January 2024, Monty Corporation applied for a trade name, incurring legal costs of $16,800. In January 2025, Monty incurred $7,200 of legal fees in a successful defense of its trade name.

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

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11P

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

Ignoring the response for part (b), compute the 2026 amortization and the 12/31/26 book value, assuming that at the beginning
of 2026, based on new market research, Monty determines that the fair value of the trade name is $15,120. Estimated total
future cash flows from the trade name is $16,120 on January 3, 2026.
2026 amortization
12/31/26 book value
$
$

In early January 2024, Monty Corporation applied for a trade name, incurring legal costs of $16,800. In January 2025, Monty incurred
$7,200 of legal fees in a successful defense of its trade name.
(a)
Your answer is correct.
Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the
trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.)
2024 amortization
(b)
12/31/24 book value
2025 amortization
Question Part Score
$
$
12/31/25 book value $
$
eTextbook and Media
2025 amortization
Your answer is correct.
$
1680
12/31/25 book value $
15120
2480
Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025, Monty determines that
the trade name will provide no future benefits beyond December 31, 2028.
19840
5580
Attempts: 1 of 4 used
16740
2/2

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