Metlock Industries has the following patents on its December 31, 2024, balance sheet: Useful Life at Date Acquired 20 years 10 years 8 years Patent Item Patent A Patent B Patent C Initial Cost $51,600 $20,400 $19,200 Date Acquired 3/1/21 7/1/22 9/1/23
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a) Compute the total carrying amount of Metlock's patents on its december 31, 2024
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- 3- Yoon Industries has the following patents on its December 31, 2018, statement of financial position (amounts in thousands). Patent Item Initial Cost Date Acquired Useful Life at Date Acquired 17 years Patent A Patent B W 40,800 March 1,2016 W 15,000 July 1, 2015 W 14,400 September 30, 2017 4; 10 years Patent C Instructions Compute the total carrying amount of Yoon's patents on its December 31, 2018, statement of financial position.Accounting for Various Intangible Costs: Amortization, Change in Accounting Estimate Munn Inc. reported other noncurrent asset account balances on December 31, 2020, as follows. Patent $672,000 Accumulated amortization (84.000) Net patent $588,000 Transactions during 2021 and other information relating to Munn’s other noncurrent assets include the following. 1. The patent was purchased from Grey Company on January 2, 2019, when the remaining legal life was 16 years. On January 1, 2021, Munn determined that the remaining useful life of the patent was only eight years from the date of its acquisition. 2. On January 1, 2021, in connection with the purchase of a trademark from Cody Corp., the parties entered into a noncompetition agreement. Munn paid Cody $2,800,000, of which 75% related to the trademark and 25% reflected Cody’s agreement not to compete for a period of five years in the line of business covered by the trademark. Munn considers the life of the trademark to be…mpaired Goodwill and Amortization of Patent On April 1, a patent with an estimated useful economic life of 12 years was acquired for $86,400. In addition, on December 31, it was estimated that goodwill of $40,500 was impaired. a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. April 1 Patents fill in the blank af587df38070ffe_2 fill in the blank af587df38070ffe_3 Cash fill in the blank af587df38070ffe_5 fill in the blank af587df38070ffe_6 Feedback Recall that goodwill is not amortized because its useful life is indefinite. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31 Amortization Expense-Patents fill in the blank a52e4402306cfed_2 fill in the blank a52e4402306cfed_3 Patents
- On April 1, a patent with an estimated useful economic life of 12 years was acquired for $100,800. In addition, on December 31, it was estimated that goodwill of $27,500 was impaired. a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. April 1 Patents fill in the blank eea2f202506803f_2 fill in the blank eea2f202506803f_3 Cash fill in the blank eea2f202506803f_5 fill in the blank eea2f202506803f_6 b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31 fill in the blank 502bbf0b5fa3fbc_2 fill in the blank 502bbf0b5fa3fbc_3 fill in the blank 502bbf0b5fa3fbc_5 fill in the blank 502bbf0b5fa3fbc_6 c. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank. Dec. 31 fill…For each of the following intangible assets, indicate the amount of amortization expense that should be recorded for the year 2017 and the amount of accumulated amortization on the balance sheet as of December 31, 2017. Trademark Patent Copyright Cost $35,800 $47,400 $69,200 Date of purchase 1/1/10 1/1/12 1/1/15 Useful life indefinite 10 yrs. 20 yrs. Legal life undefined 20 yrs. 50 yrs. Method SL* SL SL *Represents the straight-line method. If an amount is zero, enter "0". Amount Trademark Patent Copyright 2017 amortization expense $fill in the blank 1 0 $fill in the blank 2 5,100 $fill in the blank 3 3,780 Accumulated amortization, Dec. 31, 2017 $fill in the blank 4 0 $fill in the blank 5 30,600 $fill in the blank 6 11,340Determining Carrying Value and Amortization of Intangible Assets Review the following information pertaining to Denzel Company. A patent was purchased on January 2, 2018, for $149,500 when the remaining legal life was 16 years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition. On January 1, 2020, Denzel Company purchased a second patent for $184,000 cash. At January 1, 2020, 6 years of the patent's legal life of 20 years had already expired. On June 30, 2020, Denzel Company paid a firm $18,400 for a new trademark. Denzel considers the life of the trademark to be indefinite. On November 1, 2020, Denzel Company acquired all noncash assets and assumed all liabilities of Lee Company at a cash purchase price of $276,000. Denzel determined that the fair value of the identfiable net assets acquired in the transaction is $269,100. Note: When answering the following questions, do not round until your…
- Prepare journal entries for acquisition of patent, amortization of patent on December 31 and entries for impaired goodwill as on December 31 for the patent which was acquired with the amount of P1,500,000 by Roby Co on April 1 with life of 12 yrs. The company has estimated that the goodwill amounted to P600,000 was inpaired as on December 31. EXE.2.22. Center Company acquired three intangible assets before 2020. The entity is preparing financial statements on December 31, 2020. Before that date, no formal financial statements had been prepared and the cost of intangible assets had been charged to operations when acquired. The following intangible assets were accounted for in this manner. Acquisition date January 1, 2016 July 1, 2017 January 1, 2018 Useful life Cost Copyright 1 Copyright 2 400,000 360,000 500,000 20 15 Patent 10 Required: Compute the total carrying amount of Intangible asset on December 31,2020. 3. At the beginning of current year, Outlandish Company entered into a franchise agreement with Jollibee Company to sell - Jollibee products for an indefinite period. The agreement provides for an initial fee of P20,000,000, P5,000,000 down upon signing of the contract and the balance in four equal annual payments every year-end. The entity signed 10% interest-bearing note for the balance. The collection of the note is…Computing Subsequent Carrying Amount of Patents In January of Year 1, Ford Co. purchased a patent from a research institution for $250,000. The patent was estimated to have a useful life of 15 years. In December of Year 2, Ford Co. unsuccessfully defended the patent in legal proceedings. The fair value of the patent on December 31 of Year 2, is now estimated to be $50,000 with a 2-year useful life. a. Record the entry for the legal fees of $20,000, paid in cash. b. Record any adjusting entry required on December 31 of Year 2. c. Determine the carrying value of the patent on December 31 of Year 2. • Note: Round your final answers to the nearest dollar. Date a. Dec. 31, Year 2 b. Dec. 31, Year 2 C. Account Name To record legal fees. To record adjusting entry. Patent net carrying value, Dec. 31, Year 2 $ 0 > > Dr. 0 0 0 0 Cr. 0 O O O
- Computing Impairment of Intangible Assets Stiller Company had the following information for its three intangible assets. 1. Patent: A patent was purchased for $180,000 on June 30, 2018. Stiller estimated the useful life of the patent to be 15 years. On December 31, 2020, the estimated future cash flows attributed to the patent were $153,000. The fair value of the patent was $135,000. 2. Trademark: A trademark was purchased for $9,000 on August 31, 2019. The trademark is considered to have an indefinite life. The fair value of the trademark on December 31, 2020, is $4,500. 3. Goodwill: Stiller recorded goodwill in January 2019, related to a purchase of another company. The carrying value of goodwill is $54,000 on December 31, 2020. On December 31, 2020, the segment for which the goodwill relates had a fair value of $1,044,000. The book value of the net assets of the segment (including goodwill) is $1,080,000. Note: Round each of your answers to the nearest whole dollar. a. Classify each…Computing Subsequent Carrying Amount of Patents In January of Year 1, Ford Co. purchased a patent from a research institution for $325,000. The patent was estimated to have a useful life of 15 years. In December of Year 2, Ford Co. defended the patent in legal proceedings and successfully retained rights of ownership of the patent. The estimated life of the patent did not change from its original estimate Legal expenses on December 31 were $26,000. Determine the (1) amortization for Year 2, and (2) carrying value of the patent on December 31 of Year 2. Note: Round your final answers to the nearest dollar. 1. Amortization for Year 2 1 2. Carrying value on Dec 31, Year 25 25.214 x 302.572 xExercise 12-04 Presented below is selected information for Carla Vista Company. Answer the questions asked about each of the factual situations. (Do not leave any answer field blank. Enter 0 for amounts.) 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 life 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 balance sheet for the patent, net of accumulated amortization, at December 31, 2020? The amount to be reported 2. Carla Vista bought a franchise from Alexander Co. on January 1, 2019, for $395,000. The carrying amount of the franchise on Alexander's books on January 1, 2019, was $395,000o. The franchise agreement had an estimated useful life of 30 years. Because Carla Vista must enter a competitive bidding at the end of 2021,…
