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- On January 1, 2019, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing note due January 1, 2021. The fair value of the land was $126,252.00 on the date of sale. The company purchased the land for $105,000 on January 1, 2013. Required: Prepare all the journal entries on Crouser’s books for January 1, 2019, through January 1, 2021, in regard to the Chad note.On January 1, 2019, Jericho Company purchased a patent for P7,140,000. The patent is being amortized over the remaining legal life of 15 years expiring on January 1, 2034. During 2022, the entity determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. What amount should be reported for the patent, net of accumulated amortization, on December 31, 2022? A. 4,282,000 B. 4,896,000 C. 5,050,000 D. 5,236,000A. 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
- 9. Dynamite Company acquired rights to a patent under a licensing agreement that required an advance royalty payment when the agreement was signed. The entity remitted royalties earned Page 6 of 7 and due under the agreement on October 31 each year. Additionally, on the same date, the entity paid, in advance, estimated royalties for the next year. The entity adjusted prepaid royalties at the end of the year. The entity provided the following information for the year ended December 31, 2020: P 650,000 1,100,000 250,000 On December 31, 2020, what amount should be reported as prepaid royalties? 1/1 Prepaid royalties Royalty payment (charged to royalty expense) Year-end credit adjustment to expense 10/31 12/31Corn Snake Company purchased patent on January 1, 2019, for P3,570,000. The patent was being amortized over its remaining legal life of 15 years. During 2022, Corn Snake determined that the economic benefits of the patent would not last longer than ten years form the date of acquisition. What amount should be reported in the statement of financial position as patent, net of accumulated amortization, at December 31, 2022? A. 2,618,000 B. 2,448,000 ]C. 2,520,000 D. 2,142,000Sawi Ak Co. acquires copyright from authors, paying advance royalties in some cases and in others, paying royalties within 30 days from year end. Sawi Ak Co. reported royalty expense of P375,000 for the year ended December 31, 2020. The following data are included in the corporation’s balance sheet, 2019 and 2020, respectively: Prepaid royalties- P60,000; P50,000 Royalties payable- P75,000; P90,000 Under cash basis, what amount of royalty expense should be reported in 2020 profit or loss? P380,000 P375,000 P400,000 P350,000
- On September 1, 2019, Jordan, Inc. acquired a patent for $600,000. The patent has 16 years remaining in its legal life. However, Jordan, Inc. expects the patent's technology to have a useful life of 8 years. Prepare the journal entries to record the acquisition of the patent and the amortization expense for 2019. Date Account Debit CreditYou noted the following items relative to the company's intangibles assets of Pete Corporation at December 31, 2020.• On January, 2019 Pete signed an agreement to operate as franchisee of Clear Copy Service, Inc., for an initial franchise of P680,000. Of this amount, P200,000 was paid when the agreement was signed and the balance was payable in four annual payment of P120,000 each beginning on January 1, 2020. The agreement provides that the down payment is not refundable and no future services are required in the franchisor. The implicit rate for loan of this type is 14%. The agreement also provides that 5% of the revenue from the franchise must be paid to the franchisor annually. Pete's revenue from the franchise for 2020 was P8,000,000. Pete estimates the useful life of the franchise to be ten years.• Pete incurred P624,000 of experimental development costs in its laboratory to develop a patent which was granted on January 2, 2019, Legal fees and other costs associated with the…9. On January 1, 2021, an entity reported patent cost of P1,920,000 and related accumulated amortization of P240,000. The patent was purchased on January 1, 2019 at which date the remaining legal life was 16 years. On January 1, 2021, the useful life of the patent was determined to be only 8 years from the date of acquisition. On January 1, 2021, the entity paid P800,000, of which three-fourths was for a trademark and one-fourth was for the other entity's agreement not to compete for a 5-year period in the line of business covered by the trademark. The entity considered the life of the trademark indefinite. Moreover, the entity agreed to pay P50,000 to the other entity as consulting fee each year for 5 years payable every January 1. What is the total carrying amount of intangible assets on December 31, 2021?
- On January 1, 2019, West company acquired a tract of land for P1,000 000. West company paid P100,000 down and singed a two - year promissory note for the balance plus 10% interest compounded annually. The note matures on January 1, 2021. Required: Prepared journal entries to record: 1. Purposed of land on January 1, 2019 2. Accrued interest on December 31, 2019 3. Accrued interest on December 31, 2020 4. Full payments on the note on January 1, 2021B. January 17, 2020, Roddick Company incurred $172,000 in successfully defending one of its patents in an infringement suit. The patent expires during December 2023. Required: Prepare the journal entry needed at the date of the transaction and on December 31, 2020 to record any resultant amortization.On January 1, 2018, Joel Company purchased a patent for P7,140,000. The patent is being amortized over its remaining legal life of 15 years. During 2021, Joel determined that the economic benefits of the patent would not last longer than 10 years from the date of acquisition. What should be reported in the statement of financial position as carrying amount of patent on December 31, 2021?