3. Paris paid Cherry $333,333 on 12/31/2020 for the exclusive right to market a particular product using the Cherry Co name and logo in promotional material. The franchise follows the rules of Going Concern. Paris also spent $600,000 on 12/31/2020 in developing a new manufacturing process. Its application for a patent is submitted. Paris believes it will be successful In January of 2021 Paris application for a patent was granted. Legal and registrations costs incurred were $ 210,000. The patent runs for 20 years. But the manufacturing process will only be useful to Paris for 10 years What is the impact on net income related to the $210,000 of costs for the patent?
3. Paris paid Cherry $333,333 on 12/31/2020 for the exclusive right to market a particular product using the Cherry Co name and logo in promotional material. The franchise follows the rules of Going Concern. Paris also spent $600,000 on 12/31/2020 in developing a new manufacturing process. Its application for a patent is submitted. Paris believes it will be successful In January of 2021 Paris application for a patent was granted. Legal and registrations costs incurred were $ 210,000. The patent runs for 20 years. But the manufacturing process will only be useful to Paris for 10 years What is the impact on net income related to the $210,000 of costs for the patent?
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 13E
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3. Paris paid Cherry $333,333 on 12/31/2020 for the exclusive right to market a particular product using the Cherry Co name and logo in promotional material. The franchise follows the rules of Going Concern.
Paris also spent $600,000 on 12/31/2020 in developing a new manufacturing process. Its application for a patent is submitted. Paris believes it will be successful
In January of 2021 Paris application for a patent was granted. Legal and registrations costs incurred were $ 210,000. The patent runs for 20 years. But the manufacturing process will only be useful to Paris for 10 years
What is the impact on net income related to the $210,000 of costs for the patent?
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