1. Carla Vista purchased a patent from Vania Co. for $1,290,000 on January 1, 2018. The patent is being amortized over its remaining legal ife of 10 years, expiring on January 1, 2028. During 2020, Carla Vista determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balane sheet for the patent, net of accumulated amortization, at December 31, 2020? The amount to be reported
Q: ABC Co. purchased a patent on January 1, 2018 for P300,000. The patent was being amortized over its…
A: Amortization is allocation of cost of Intangible assets over the life of assets
Q: What should be the amortization expense for 2022?
A: Amortization expense refers to the reduction in the value of intangible assets of the company like…
Q: 2. Sheridan bought a franchise from Alexander Co. on January 1, 2019, for $330,000. The carrying…
A: GIVEN 2. Sheridan bought a franchise from Alexander Co. on January 1, 2019, for $330.000. The…
Q: Wildhorse Corporation purchased a patent for $ 148500 on September 1, 2019. It had a useful life of…
A: Formula: Amortization expense = ( Asset cost - Salvage value ) / Useful life
Q: 1. Harmonious Company acquired a patent for a drug with a remaining legal and useful life of six…
A: solution : Note Dear student as per Bartleby guidelines we are required to solve first question only…
Q: How much is the amortization expense for the year 2018? 2. What is the patent carrying value at…
A: Amortization of Patent Right
Q: On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the…
A: The amortization expense is charged on intangible assets as reduced value of asset with time passed.…
Q: In 2020, ABC Machine Company spent P352,000 on research and development costs for an invention. This…
A: The expenses related to the patent will be the amortization expense and other expenses incurred…
Q: Provide the necessary accounting entries: A patent right is acquired July 1,2021, for P250,000;…
A: A patent is an intangible asset. The amount of patent is amortized as compared to depreciation in…
Q: 1. The corporation purchased a patent on May 1, 2019 for P216,000. On this date, the patent has a…
A: The amount paid to settle as infringements suit is to maintain the flow and economies benefit from…
Q: ABC Co. purchased a patent on January 1, 2018 for P300,000. The patent was being amortized over its…
A: Introduction Patents amortization: Patents are the intangible fixed assets. Their cost is spread…
Q: On January 1, 20x1, T Co. purchase a patent from B Inc. for P500,000. Blue has held this patent for…
A: The patent is a non-tangible asset of the company that is amortized every year.
Q: 1. Sheridan purchased a patent from Vania Co. for $1,160,000 on January 1, 2018. The patent is being…
A: A patent is a privilege allowed to a designer by the government that allows the innovator to reject…
Q: purchase, the patent was valid for 15 years. On January 1, 2020, Arabian Company purchased a patent…
A: In the books of Arabian Company Journal entries to record patent acquisition is : Date Account…
Q: Taylor Swift Corporation purchases a patent from Salmon Company on January 1, 2017, for $54,000. The…
A: Journal entry is a record of financial transaction in the books of accounts maintained by an…
Q: On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is…
A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization…
Q: Mysore Company acquired a patent on January 1, 2022, for $75,000. The patent has a remaining legal…
A: Note: Patent is amortized during the period in which benefit received from the same. Legal life of…
Q: Sheridan purchased the license for distribution of a popular consumer product on January 1, 2020,…
A: Definition: Amortization: Decreasing value of intangible Asset over a period is called Amortization
Q: On January 1, 2016, Guava Co. bought a patent for P270,000. Amortization is being made over its…
A: A patent seems to be a federally awarded privilege that allows an inventor to prevent others from…
Q: On June 2, 2021, Tabitha Co. purchased a franchise for $589,000 by signing a five-year contract. At…
A: Cost of franchise = $589000 Contract period = 5 years Amortization per year = $589000/5 =$117800
Q: 18) On July 1, 2022, Jenks Company purchased the copyright to Jackson Computer tutorials for…
A: Amortization is similar to depreciation, but is applied to intangible assets and loans. Amortization…
Q: In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that…
A: Amortization expense: A charge created on intangible asset for its use over the life of asset. It is…
Q: On September 30, 2019, Leeds LTD. acquired a patent in conjunction with the purchase of another…
A: 1) Calculation of Amortization for the patent for 2019 and 2020: Amortization = ( Total patent…
Q: 16. Buttercup Company leased a property to Dickies Corporation on January 1, 2020 for a period of 8…
A: Lease receivable on January 1, 2020 =present value on January 1, 2020 - First payment on January 1,…
Q: On September 1, 2019, Jordan, Inc. acquired a patent for $600,000. The patent has 16 years remaining…
A: Date Account Titles and Explanation Debit Credit Sep'1 Patent $6,00,000 Cash…
Q: Company A purchased a patent from Company B on 6/30/2021 for $660,000. The useful life of the patent…
A: Impairment loss: This loss occurs when the fair market value of an asset is less than carrying value…
Q: 4. Blade Corporation spent P500,000 for R&D expenses to develop a patent which is registered on Jan.…
A: Amortization of Patent: Amortization of patent is same like straight-line depreciation calculations…
Q: ABC Co. purchased a patent on January 1, 2022, for P714,000. The patent was being amortized over its…
A: Formula: Yearly Amortization expense = Asset value / useful life.
Q: Celine Dion Corporation purchases a patent from Salmon Company on January 1, 2019, for $55,000. The…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Berry Co. purchases a patent on January 1, 2021, for $38,000 and the patent has an expected useful…
A: Amortization expense/ depreciation = cost - residual value / useful life
Q: VirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the…
A: Amortization of the Patent: Amortization of the Patent is the tactic in which the cost of the patent…
Q: .In Jan of 2018, Entity D purchased a patent at a cost of P200,000. Legal and filing fees of P50,000…
A: solution given Purchase cost 200000 Legal and filing fees 50000 Estimated life 10…
Q: On January 1, 2022, Blessed is uncertain that the process can actually be made economically…
A: Depreciation is calculated on the basis of the entity's estimates of useful life and legal life is…
Q: On January 1, 2019, the account balances of Acelle Company showed patent cost of P1,920,000 and…
A: Intangible assets: - Intangible assets are those assets of the company which cannot be touched or…
Q: Good night PREGUNTA
A: Amortization: It is the process of allocating the value of an intangible asset over its definite…
Q: in January 2019. The patents have different lives as indicated in the following schedule: Remaining…
A: Amortization refers to the decline in value of an intangible asset over the usefull life of the…
Q: Remington Corporation purchases a patent from Durler Company on January 1, 2020, for $84,000. The…
A: Journal Entry: It is a systematic record of a financial transaction recorded in chronological…
Q: During 2021, Entity K purchased a franchise for P960,000. In addition, 5% of the revenue from the…
A: Annual amortization = Purchase cost of franchise / useful life of the franchise = P960,000/10…
Q: On January 1, 2018, Don Company purchased a patent from an original patentee for 2,400,000. The…
A: The patent is the intangible fixed asset and hence required tobe amortised as per…
Q: On January 1, 2020, Brown Mining Enterprises purchased an existing coalmine. Brown expects to…
A: Assets Retirement Obligation This term which was used for the large corporate company which can be…
Q: Crane Company purchased a patent on January 1, 2020 for $568000. The patent had a remaining useful…
A: Amortization: Amortization can be defined as the process in which the cost of the intangible assets…
Q: R Company registered a patent on January 1, 2015. P Company purchased the patent from R Company for…
A: Note: As per relevant accounting standard, Legal life of patent is 20 years. It means patent will be…
Q: On January 1, 2019, Jericho Company purchased a patent for P7,140,000. The patent is being amortized…
A: Answer is option B) 4,896,000
Q: Oriole Corporation purchases a patent from Pharoah Company on January 1, 2020, for $73,920. The…
A: Given: Patent cost =$73,920 Life 10 yeas 1 Jan 2022 book value is $59,136 Amount spend on defending…
Q: 1. Sheridan purchased a patent from Vania Co. for $1,160,000 on January 1, 2018. The patent is being…
A: As per Accounting standards, Life of intangible assets (patent) is verified every year and if there…
Q: 1. Pharoah purchased a patent from Vania Co. for $2,700,000 on January 1, 2018. The patent is being…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A patent was acquired by Renfro Corporation on January 1, 2014, at a cost of $90,000. The useful…
A: (a) Amortisation expense for the year 2014 Acquisition cost of patent = $90,000 Useful life of the…
Q: ABC Company acquired a patent right on July 1, 2019 for P500,000. The asset has a legal life of 15…
A:
Q: what is the amortization expense for the year ended December 31, 2022?
A: Intangible assets are assets that doesn't have a physical existence. Example: Goodwill, Patent,…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- At December 31, 2020, Green company had three existing patents shown below: Date Acquired February 14, 2016 January 3, 2019 July 1, 2019 Useful life 8 years 10 years 5 years Cost Patent A Patent B Patent C P 150,000 210,250 72,000 During 2021, the company had the following transactions and assessments: • Due to the emerging competition relating to the product being manufactured in Patent A, it is expected that the right will be useful only in 2021 and 2022. • Patent B is believe to be uniquely useful as long as the company retains the right to use it. • On June 1, 2021, the company unsuccessfully attempted to defend its right to Patent C. Legal fees of P15,000 was incurred in this action. The asset was immediately derecognized in the accounts. The company's policy is to take full year amortization in the year of acquisition and no amortization in the year of derecognition using straight-line method. How much is the amortization of patent for the year 2021?At December 31, 2020, Green company had three existing patents shown below: Date Acquired Cost Useful life Patent A February 14, 2016 P 150,000 8 years Patent B January 3, 2019 210,250 10 years Patent C July 1, 2019 72,000 5 years During 2021, the company had the following transactions and assessments: Due to the emerging competition relating to the product being manufactured in Patent A, it is expected that the right will be useful only in 2021 and 2022. Patent B is believe to be uniquely useful as long as the company retains the right to use it. On June 1, 2021, the company unsuccessfully attempted to defend its right to Patent C. Legal fees of P15,000 was incurred in this action. The asset was immediately derecognized in the accounts. The company’s policy is to take full year amortization in the year of acquisition and no amortization in the year of derecognition using straight-line method. How…Windsor Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Patent A Patent B Patent C 2. 3. Year — Initial Cost Date Acquired $52,800 $21,600 $16,800 The following events occurred during the year ended December 31, 2020. 2021 1. Research and development costs of $327,900 were incurred during the year. Patent D was purchased on July 1 for $10,800. This patent has a useful life of 12 years. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2020. The controller for Windsor estimates the future cash flows from Patent B will be as follows. 2022 3/1/16 Future Cash Flows 7/1/17 $2,500 $2,500 9/1/18 Useful Life at Date Acquired 20 years 10 years 8 years
- The following is selected information for Sunland Company. Answer the questions asked about each of the factual situations. (Do not leave any answer field blank. Enter o for amounts) 1. Sunland purchased a patent from Vania Co. for $1,280,000 on January 1, 2023. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2033. During 2025, Sunland determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2025? The amount to be reported $ 2. Sunland bought a franchise from Alexander Co. on January 1, 2024, for $390,000. The carrying amount of the franchise on Alexander's books on January 1, 2024, was $390,000. The franchise agreement had an estimated useful life of 30 years. Because Sunland must enter a competitive bidding at the end of 2026, it is unlikely that the franchise…On April 1, 2020, the Tech Corp. acquired a patent for $162,000. This patent has an estimated useful life of 12 years with an estimated residual value of $18,000. Required: a. In determining the 12-year useful life of this patent, what two lives of the patent did Tech consider? b. Which of these two lives did Tech use as the patent's useful life or is that determinable? c. Make the December 31, 2020, entry for Tech to record the 2020 amortization of this patent in the manner that Tech would have to use in this class. d. What will be the book value of this patent on the December 31, 2023, balance sheet? 14 010 120m 20 1Presented below is selected information for Sheridan Company. Answer the questions asked about each of the factual situations. (Do not leave any answer field blank. Enter O for amounts.) 1. Sheridan purchased a patent from Vania Co. for $1,160,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Sheridan determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020? The amount to be reported $ 2. Sheridan bought a franchise from Alexander Co. on January 1, 2019, for $330,000. The carrying amount of the franchise on Alexander's books on January 1, 2019, was $330,000. The franchise agreement had an estimated useful life of 30 years. Because Sheridan must enter a competitive bidding at the end of 2021, it is unlikely that the…
- Presented below is selected information for Alatorre Company. 1. Alatorre purchased a patent from Vania Co. for $1,000,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Alatorre determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020? 2. Alatorre bought a franchise from Alexander Co. on January 1, 2019, for $400,000. The carrying amount of the franchise on Alexander's books on January 1, 2020, was $400,000. The franchise agreement had an estimated useful life of 30 years. Because Alatorre must enter a competitive bidding at the end of 2021, it is unlikely that the franchise will be retained beyond 2028. What amount should be amortized for the year ended December 31, 2020? 3. On January 1, 2020, Alatorre incurred…Questions #28-29 are based on the information below: On January 1, 2021, The Donut Stop purchased a patent for $80,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only five more years. 28. The entry to record the 2021 amortization expense for the patent should include: A. Debit Patents for $16,000 B. Debit Amortization Expense for $16,000 C. Debit Amortization Expense for $4,000 D. Debit Patents for $4,000 29. What should be recorded on the balance sheet for Patents at December 31, 2022? A. $80,000 B. $64,000 C. $72,000 D. $48,000using information below how can I prepere Bringle company income statement effects for year end December 31, 2019? We have the following information: A patent was purchased from Lou Company for $1,845,000 on January 1, 2018. Bringle 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 $1,635,000 when Lou sold it to Bringle. During 2019, a franchise was purchased from Rink Company for $470,000. In addition, 6% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Bringle estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase On January 1, 2019, Bringle estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 10 years from January 1, 2019 Step 2 Schedule showing the intangibles section of Bringle's balance sheet at December 31, 2019…
- 1. Pharoah purchased a patent from Vania Co. for $2,700,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Pharoah determined that the economic benefits of the patent would not last longer than 7 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020? The amount to be reported 2$ 2. Pharoah bought a franchise from Alexander Co. on January 1, 2019, for $979,000. The carrying amount of the franchise on Alexander's books on January 1, 2019, was $635,000. The franchise agreement had an estimated useful life of 20 years. Because Pharoah must enter a competitive bidding at the end of 2028, it is unlikely that the franchise will be retained beyond 2028. What amount should be amortized for the year ended December 31, 2020? The amount to be amortized 3. On January 1, 2020, Pharoah incurred organization…1. Sheridan purchased a patent from Vania Co. for $1,160,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Sheridan determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020? The amount to be reported ______ $enter the dollar amount to be reported _________ 2. Sheridan bought a franchise from Alexander Co. on January 1, 2019, for $330,000. The carrying amount of the franchise on Alexander’s books on January 1, 2019, was $330,000. The franchise agreement had an estimated useful life of 30 years. Because Sheridan must enter a competitive bidding at the end of 2021, it is unlikely that the franchise will be retained beyond 2028. What amount should be amortized for the year ended December 31, 2020? The…Sami company acquired a patent on October 1, 2020. Sami paid cash of $55,000 to the seller. registration fees of $5,000 were paid related to the acquisition. On the same date, Sami paid $5,000 advertising expense. The patent has a useful life of 10 years. What is the amount of patent to be reported at the statement of financial position on 31/12/2021? a- 55000 b- 60000 c- 50000 d- 52500