Hello tutor please need answer this accounting question On January 1, 2014, Brendan, Inc., reports net assetsof $896,400 although equipment (with a four-year life) having abook value of $497,000 is worth $560,000 and an unrecordedpatent is valued at $48,400. Hope Corporation pays $806,240 onthat date for an 80 percent ownership in Brendan. If the patent isto be written off over a 10-year period, at what amount should itbe reported on consolidated statements at December 31, 2015?a. $38,720.b. $43,560.c. $30,976.d. $34,848.

Step 1: Define AssetAn asset is a type of wealth or capital possessed or bought by a person or…

Answered: On January 1, 2014, Brendan, Inc.,…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of zero. Bliss uses the straight -line method of depreciation. At the beginning of the sixth year, the assets book value is 200,000 and Bliss changes the estimate of the assets life to 25 years, so that 20 years now remain in the assets life. Explain how this change will be accounted for in Blisss financial statements, and compute the current and future annual depreciation expense.
On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.
For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.
On January 1, 2020, Grand Haven, Inc., reports net assets of $843,200 although equipment (with a four-year remaining life) having a book value of $463,000 is worth $525,000 and an unrecorded patent is valued at $46,800. Van Buren Corporation pays $761,600 on that date to acquire an 80 percent equity ownership in Grand Haven. If the patent has a remaining life of nine years, at what amount should the patent be reported on Van Buren's consolidated balance sheet at December 31, 2021? Multiple Choice $36,400. $29,120. $41,600. $32,760.
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?
On January 1, 2008, Ryan Company purchased a patent for P7,140,000. The patent is being amortized over its remaining legal life of 15 years expiring on January 1, 2023. During 2011, Ryan determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. Question: What amount should be reported in the statement of financial position for the patent, net of accumulated amortization, on December 31, 2011?
On January 1, 2017, Mae Company, an SME, purchased a patent for P7,140,000. The patent is being amortized over its remaining legal life of 15 years expiring on January 1, 2032. During 2020, Mae Company 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 in the statement of financial position for the patent, net of accumulated amortized, at December 31, 2020?
On January 1, 2018, D, Incorporated, paid $88,959 for a 30% interest in S Corporation. This investee had assets with a book value of $500,000 and liabilities of $300,000. A patent held by S Inc having a book value of $10,000 was actually worth $48,000 with a four year remaining life. Any goodwill associated with this acquisition is considered to have an indefinite life. During 2018, S Inc reported income of $55,900 and paid dividends of $28,900 while in 2019 it reported income of $79,900 and dividends of $29,900. Assume D Inc. Has the ability to significantly influence the operations of S Inc. During the 2018, S Corporation selling inventory costing 40,000 to to D Corporation for 60,000 at the end of fiscal year, D Inc, still retain 20,000. During the 2019 S Corporation selling inventory costing 35,000 to to D Corporation for 50,000 at the end of fiscal year, d Inc. still retain 15,000. The retain inventoy was selling at the beginning of the following year. 8-How Much Your Equity…
On January 1, 2023, Bertrand Incorporated paid $70,800 for a 40% interest in Chestnut Corporation's common stock. This investee had assets with a book value of $235,000 and liabilities of $95000. A patent held by Chestnut having a book value of $8900 was actually worth $25,400. This patent had a six year remaining life. Any further excess cost associated with this acquisition was attributed to an indefinite-lived asset. During 2023, Chestnut earned income of $45,700 and declared and paid dividends of $20,000. During 2024, the fair value of Bertrand's investment in Chestnut had risen from $84,080 to $88,960. Assuming Bertrand uses the quity method, what balnace should appear in the investment in Chestnut account as of December 31, 2024? Assuming Bertrand uses fair-value accounting, what income from the investment in Chestnut should be reported for 2024?
On January 1, 2007, Taft Co. purchased a patent for 714,000. The patent is being amortized over its remaining legal life of fifteenyears expiring on January 1, 2022. During 2010, Taft 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 in the balance sheet for the patent, net of accumulated amortization, at December 31, 2010?a.428,400b.489,600c.504,000d.523,600
On January 2, 2018,Judd Co. bought a trademark from Krug Co. for P500,000. Judd retained an independent consultant, who estimated the trademark’s remaining life to be fifty years. Its unamortized cost on Krug’s accounting records was P380,000. In Judd’s December 31, 2018 balance sheet, what amount should be reported as accumulated amortization? a P7,600 b P9,500 c P10,000 d P12,500

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