The following information relates to the intangible assets of Lettuce Express: a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produ fair value of the identifiable net assets of Farmers Produce was $1,350,000. b. Included in the assets purchased from Farmers Produce was a patent for a me $45,000. The original legal life of the patent was 20 years. There are still 17 ye Express estimates the patent will be useful for only 10 more years. c. Lettuce Express acquired a franchise on July 1, 2021, by paying an initial franch life of the franchise is seven years.
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- The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining legal life of twelve years is bought, and Hanna expects to be able to use it for six years. It is purchased at a cost of $48,000. B. A copyright with a remaining life of thirty years is purchased, and Hanna expects to be able to use it for ten years. It is purchased for $70,000. Determine the annual amortization amount for each intangible asset.The following information relates to the intangible assets of Lettuce Express:a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,600,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,440,000.b. Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce valued at $49,500. The original legal life of the patent was 20 years. There are still 17 years left on the patent, but Lettuce Express estimates the patent will be useful for only 9 more years.c. Lettuce Express acquired a franchise on July 1, 2021, by paying an initial franchise fee of $216,000. The contractual life of the franchise is eight years.Required:1. Record amortization expense for the intangible assets at December 31, 2021.2. Prepare the intangible asset section of the December 31, 2021, balance sheet.The following information relates to the intangible assets of Lettuce Express: On January 1, 2024, Lettuce Express completed the purchase of Farmers Produce, Incorporated, for $1,570,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,413,000. Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce valued at $46,800. The original legal life of the patent was 20 years. There are still 17 years left on the patent, but Lettuce Express estimates the patent will be useful for only 9 more years. Lettuce Express acquired a franchise on July 1, 2024, by paying an initial franchise fee of $211,200. The contractual life of the franchise is eight years. Required: 1. Record amortization expense for the intangible assets at December 31, 2024.2. Prepare the intangible asset section of the December 31, 2024, balance sheet.
- The following information relates to the intangible assets of Lettuce Express: On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,460,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,314,000. Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce valued at $45,100. The original legal life of the patent was 20 years. There are still 17 years left on the patent, but Lettuce Express estimates the patent will be useful for only 11 more years. Lettuce Express acquired a franchise on July 1, 2021, by paying an initial franchise fee of $145,200. The contractual life of the franchise is six years. Required: 1. Record amortization expense for the intangible assets at December 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the amortization on goodwill.…The following information relates to the intangible assets of Lettuce Express: On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,460,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,314,000. Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce valued at $45,100. The original legal life of the patent was 20 years. There are still 17 years left on the patent, but Lettuce Express estimates the patent will be useful for only 11 more years. Lettuce Express acquired a franchise on July 1, 2021, by paying an initial franchise fee of $145,200. The contractual life of the franchise is six years. 1. Record amortization expense for the intangible assets at December 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the amortization on goodwill. Note: Enter debits before credits.…The following information relates to the intangible assets of Lettuce Express: On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Inc., for $1,460,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,314,000. Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce valued at $45,100. The original legal life of the patent was 20 years. There are still 17 years left on the patent, but Lettuce Express estimates the patent will be useful for only 11 more years. Lettuce Express acquired a franchise on July 1, 2021, by paying an initial franchise fee of $145,200. The contractual life of the franchise is six years. 2. Prepare the intangible asset section of the December 31, 2021, balance sheet. LETTUCE EXPRESS Balance Sheet December 31, 2021 (Intangible Assets Section) Intangible Assets Total Intangible Assets
- ! Required information [The following information applies to the questions displayed below.] The following information relates to the intangible assets of Lettuce Express: a. On January 1, 2021, Lettuce Express completed the purchase of Farmers Produce, Ic., for $1,590,000 in cash. The fair value of the identifiable net assets of Farmers Produce was $1,431,000. b. Included in the assets purchased from Farmers Produce was a patent for a method of processing lettuce valued at $54,000. The original legal life of the patent was 20 years. There are still 17 years left on the patent, but Lettuce Express estimates the patent will be useful for only 10 more years. c. Lettuce Express acquired a franchise on July 1, 2021, by paying an initial franchise fee of $187,600. The contractual life of the franchise is seven years. 2. Prepare the intangible asset section of the December 31, 2021, balance sheet. LETTUCE EXPRESS Balance Sheet December 31, 2021 (Intangible Assets Section) Intangible Assets…The following information relates to the intangible assets of University Testing Services (UTS):a. On January 1, 2021, UTS completed the purchase of Heinrich Corporation for $3,510,000 in cash. The fair value of the net identifiable assets of Heinrich was $3,200,000.b. Included in the assets purchased from Heinrich was a patent valued at $82,250. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only seven more years.c. UTS acquired a franchise on July 1, 2021, by paying an initial franchise fee of $333,000. The contractual life of the franchise is 9 years.Required:1. Record amortization expense for the intangible assets at December 31, 2021.2. Prepare the intangible asset section of the December 31, 2021, balance sheet.Binson Company has provided information on intangible assets as follows: A patent was purchased from Lou Company for $1,515,000 on January 1, 2018. Binson estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $1,285,000 when Lou sold it to Binson. During 2019, a franchise was purchased from Rink Company for $440,000. In addition, 5% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $1,500,000. Binson estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Binson incurred R&D costs in 2019 as follows: Materials and equipment $104,000 Personnel 155,000 Indirect costs 73,000 $332,000 Binson estimates that these costs will be recouped by December 31, 2020. On January 1, 2019, Binson estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018,…
- The following information relates to the intangible assets of University Testing Services (UTS): On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $2,796,000 in cash. The fair value of the net identifiable assets of Heinrich was $2,500,000. Included in the assets purchased from Heinrich was a patent valued at $103,950. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only nine more years. UTS acquired a franchise on July 1, 2024, by paying an initial franchise fee of $273,600. The contractual life of the franchise is 8 years. Required Record the year-end adjusting entry for amortization expense, if any, for the intangible assets at December 31, 2024. Prepare the intangible asset section of the December 31, 2024, balance sheet.Barb Company has provided information on intangible assets as follows: A patent was purchased from Lou Company for $1,500,000 on January 1, 2018. Barb estimated the remaining useful life of the patent to be 10 years. The patent was carried in Lou's accounting records at a net book value of $1,250,000 when Lou sold it to Barb. During 2019, a franchise was purchased from Rink Company for $500,000. In addition, 5% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Barb estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase. Barb incurred R&D costs in 2019 as follows: Materials and equipment $120,000 Personnel 140,000 Indirect costs 60,000 $320,000 Barb estimates that these costs will be recouped by December 31, 2020. On January 1, 2019, Barb estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 5 years…Janes Company provided the following information on intangible assets: A patent was purchased from the Lou Company for $1,400,000 on January 1, 2022. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou’s accounting records at a net book value of $490,000 when Lou sold it to Janes. During 2024, a franchise was purchased from the Rink Company for $640,000. The contractual life of the franchise is 10 years and Janes records a full year of amortization in the year of purchase. Janes incurred research and development costs in 2024 as follows: Materials and supplies $ 154,000 Personnel 194,000 Indirect costs 74,000 Total $ 422,000 Effective January 1, 2024, based on new events that have occurred, Janes estimates that the remaining life of the patent purchased from Lou is only five more years. Required: Prepare the entries necessary for years 2022 through 2024 to reflect the above information. Prepare a schedule showing the…