Indicate the amount of amortization expense on December 31, 2027, for Indigo Corporation.
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- These are selected 2025 transactions for Swifty Corporation: Jan. 1 Purchased a copyright for $144,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Sept. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $87,024. Purchased a small company and recorded goodwill of $174,000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events. (List debit entry before credit entry. 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 Dec. 31 Amortization Expense Copyrights (To record amortization of Copyrights) Dec. 31 Amortization Expense Patents (To record amortization of Patents) Dec. 31 Amortization Expense Goodwill (To record amortization of Goodwill) Debit 24000…These are selected 2027 transactions for Pronghorn Corporation: Jan. 1 Mar. 1 Sept. 1 Purchased a copyright for $160,800. The copyright has a useful life of 6 years and a remaining legal life of 35 years. Purchased a patent with an estimated useful life of 5 years and a legal life of 20 years for $90,000. Purchased a small company and recorded goodwill of $150.200. Its useful life is indefinite. Indicate the amount of amortization expense on December 31, 2027. for Pronghorn Corporation. Amortization expense SOn 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.
- Rakko, Inc. acquired a patent on January 1 for $70,000 cash. The patent was estimated to have a useful life of 14 years with no residual value. Required: Part a. Prepare the journal entry to record the acquisition of the patent on January 1. Part b. Prepare the journal entry to record the annual amortization as of Dec 31.Springer Company had three Intangible assets at the end of 2020 (end of the accounting year): a. A copyright purchased on January 1, 2020, for a cash cost of $15,700. The copyright is expected to have a 10-year useful lIife 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 remalning 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.)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.
- Springer Company had three intangible assets at the end of 2023 (end of the accounting year): a. A copyright purchased on January 1, 2023, for a cash cost of $15,600. The copyright is expected to have a 10-year useful life to Springer. b. Goodwill of $76,000 from the purchase of the Hartford Company on July 1, 2022. c. A patent purchased on January 1, 2022, for $54,000. The inventor had registered the patent with the U.S. Patent and Trademark Office on January 1, 2018. 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, 2023. 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 2023. 2b. Show how the three intangible assets should be reported on the balance sheet for 2023. (Assume there has been no impairment of goodwill.) Complete this question by entering your answers in the tabs…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, 2020On January 1, 20X0, Vick Company purchased a trademark for $400,000, which had an estimated useful life of 16 years. On January 1, 20X4, Vick paid $60,000 for legal fees in a successful defense of the trademark. Required: How much should Vick record as trademark amortization expense for 20X4
- On January 1, 2025, Oriole Company had a balance of $316800 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2025, the company had the following additional transactions Jan July Sept. 1 2 Purchased a patent (5-year life) $246,400 1 Acquired a 9-year franchise; expiration date July 1, 2034, $475,200 Research and development costs $162,800 Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash (List debit entry before credit entry Record entries in the order displayed in the problem statement. 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 for the amounts) Date: Account Titles and Explanation eTextbook and Media List of Accounts Debit CreditOn 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.The following are selected 2020 transactions of Kingbird Ltd. Jan. 1 Purchased a small company and recorded goodwill of €155,000. Its useful life is indefinite. May 1 Purchased for €142,500 a patent with an estimated useful life of 5 years and a legal life of 19 years. Prepare necessary adjusting entries at December 31 to record amortization required by the events above. (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.) Date Account Titles and Explanation Debit Credit Dec. 31 (To record goodwill amortization.) Dec. 31 (To record patent amortization.) please make sur ethe answer is correct 100%
