3- Yoon Industries has the following patents on its December31, 2018, statement of financial position (amounts inthousands).Patent Item Initial Cost Date AcquiredUseful Life at DateAcquired17 yearsPatent APatent BW 40,800 March 1,2016W 15,000 July 1, 2015W 14,400 September 30, 2017 4;10 yearsPatent CInstructionsCompute the total carrying amount of Yoon's patents on itsDecember 31, 2018, statement of financial position.

The intangible assets are amortized under the straight-line method, normally. The carrying value of…

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 Patent C W 40,800 March 1,2016 W 15,000 July 1, 2015 W 14,400 September 30, 2017 4 years 10 years Instructions Compute the total carrying amount of Yoon's patents on its December 31, 2018, statement of financial position.

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 Patent C W 40,800 March 1,2016 W 15,000 July 1, 2015 W 14,400 September 30, 2017 4 years 10 years Instructions Compute the total carrying amount of Yoon's patents on its December 31, 2018, statement of financial position.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7MC

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41 Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of P120,000, and accumulated amortization of P 60,000. The Patent is being amortized for its useful life of eight years. On July 1, 2018, Mayumi spent P 30,000 to defend the patent against an infringement suit. On January 1, 2019, with the rapid change in technology, the company determined that the patent will be of no value to the company and that a loss on patent obsolescence has to be recognized.How much is the loss on patent obsolescence?
On January 1, 2015, Moose Co. purchased for $360,000 a patent that had been granted two years earlier. On January 1, 2017, legal costs of $64,000 were incurred in a successful defense of the patent. Assuming the maximum period allowable is used for patent amortization, what is Moose's patent amortization expense for 2017? $21,555 $20,000 $18,000 $24,000
3- During 2018, Matsumura Ltd. Spent ¥180,000 in research costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 31, 2018, and had a legal life of 20 years and a useful life of 9 years. Legal costs of ¥25,000 related to the patent were incurred as of October 31, 2018. (Amounts are in thousands.) Instructions Prepare all journal entries required in 2018 and 2019 as a result of the transactions above.
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…
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(Accounting for Patents) During 2013, Winston Corporation spent $170,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2013, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $18,000 related to the patent were incurred as ofOctober 1, 2013.Instructions(a) Prepare all journal entries required in 2013 and 2014 as a result of the transactions above.(b) On June 1, 2015, Winston spent $9,480 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2015. Prepare all journal entries required in 2015 and 2016.(c) In 2017, Winston determined that a competitor’s product would make the New Age Piano obsolete and the patent worthless by December 31, 2018. Prepare all journal entries required in 2017 and 2018.
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Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of P120,000, and accumulated amortization of P 60,000. The Patent is being amortized for its useful life of eight years. On January 1, 2018, Mayumi purchased a competing patent for a total cost of P75,000. The newly purchased patent is expected to be used for five years. On July 1, 2018, Mayumi spent P 50,000 to defend its new patent against an infringement suit. What is the carrying value of the patents on December 31, 2018?