amortized its patent
Q: A. A company expects to retire an existing machine at the end of 1993 and will replace it with a new…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Pina Colada Industries Ltd. had one patent recorded on its books as at January 1, 2020. This patent…
A: As per IAS 38, Intangible Asset Only cost incurred in respect of development phase are to be…
Q: VirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the…
A: The intangible assets are not depreciated every year but get amortized with the passage of time.
Q: During 2017, Lyle company incurred P400,000 of research and development costs in its laboratory to…
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A: but subject to the amount of taxable income
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A: Amortization of Patent Right
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A: Depreciation: Depreciation is the concept applied on reporting of fall in original value of fixed…
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A: A patent is legal right to use the use the intangible asset. The cost of the patent is amortized…
Q: On May 11, 2018, your calendar year firm pays $6,000 for a computer server, its only asset purchase…
A: Correct Answer is option B $1200
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A: Amortization of an intangible asset is done for the period of its useful life. However, in case an…
Q: Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of…
A: Balance of patent as on 31 December 2017 = P 120,000 Useful life of an asset = 8 years Amount of…
Q: Texon Oil is being sued for price fixing and environmental damage. The litigation started this year…
A: Financial Statement- In exchange for investors' money, a business has an obligation to provide them…
Q: A company purchases an asset for P10,000.00 and plans to keep it for 20 years. If the salvage value…
A: Asset price = P 10000 Useful life (n) = 20 years Salvage value = 0
Q: On January 1, 2018, EM purchased a patent for a new consumer product for ₱4,800,000. At the time of…
A: The Patent useful life was 10 years but after purchase useful life changed to 8 years. Therefore…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A: Annual amortization = Cost of the patent / Life of the patent = $9,000,000 / 9 years = $1,000,000…
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A: Introduction: Amortization is an accounting technique that is used to reduce the market price of a…
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A: Interest rate = 6% Quarterly Payment = P 20,000 Time Period = 5 Years
Q: Dragon Fruit Trading spent P1,440,000 in acquiring a patent on January 3, 2012. Due to the…
A: A patent is legal right to use the use the intangible asset. The cost of the patent is amortized…
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A: The patent represents the intangible asset for the corporation entitles for amortization which…
Q: For each of the following unrelated situations, calculate the annual amortization expense and…
A: Amortization expense = Purchase cost of the Patent /Estimated useful life
Q: A pharmaceutical company purchased a patent for a new drug October 1 for $1,000,000. The remaining…
A: Amortization expenses are charged to the intangible assets. basically, it reflects the consumption…
Q: For the year-ended December 31, 2020 Funky Winker Bean Co. recorded $25,000 of goodwill to reflect…
A: In this case, of Funky Winker Bean Co., the goodwill is recorded for the life of two years, and the…
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A:
Q: Kjekk Company purchased a patent for $180,000 on May 1, 2017. The patent had a remaining legal life…
A: Given that, Cost of purchase of patent = $180000 Remaining useful life of patient = 10 years
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A: In the given question, Bio Drugs Ltd purchased a patent for a new drug worth $5,00,000 on January 1,…
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A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On January 1, 2021, The Donut Stop purchased a patent for $75,000. At that time, the remaining legal…
A: 1. Date General Journal Debit Credit Jan 01, 2021 Patent $75,000 Cash…
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: On January 1, 2018, Sally, Inc. bought a patent for $100,000. There were ten years left of the…
A: Patent amortization is a system of recording or charging price, through which companies allocate the…
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A: As per IAS 8 Accounting policies, Changes in accounting estimates and Errors A change is…
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A: Impairment loss is recognised when asset's carrying amount exceeds it's recoverable value.…
Q: On December 31, 2012, BTS Company sold a machine to GOT Co and simultaneously leased it back for one…
A: Deferred revenue is the liability on the balance sheet of the company, which states the prepayment…
Q: The Western Company, a company that follows IFRS, provided you with the following information about…
A: Given, On Jan. 1, 2020 : Acquired Patent for Cash = $ 45,000
Q: How much is the loss from the patent obsolescence?
A: A patent is legal right to use the use the intangible asset. The cost of the patent is amortized…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A:
Q: On January 1, 2022, Blessed is uncertain that the process can actually be made economically…
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Q: On 1 April 2021, PHI plc acquired a new machine for a price of £25,000. On the same day, PHI paid…
A: Working of depreciation on diminishing balance @ 30% Year Book Val Dep Net Val…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A: Prepare the year-end journal entry for patent amortization in 2018.
Q: For each of the following unrelated situations, calculate the annual amortization expense and…
A: Patent Amortization: The annual patent amortization expenses are equal to the value of a patent is…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A: Amortization records the usage of an intangible fixed asset over a period of time and allocates its…
Q: A company expects to retire an existing machine at the end of 1993 and will replace it with a new…
A: Let us prepare the cashflow diagram to understand the cashflow and timings
Q: A company expect to retire an existing machine at the end of 1995 and will replaced it with a new…
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Q: On December 31, 2019, Hairy Inc. Sold computer equipment to Barber Co and immediately leased it back…
A: Deferred revenue refers to the amount of money received in advance by a company before having earned…
Q: On January 1, 2021, Livingstyle Company purchased a patent for an immune system boosting drink…
A: In accounting, impairment is a permanent decrease in the value of a company's asset. It might be a…
Q: On January 1, 2019, the Business Info Company had capitalized costs of P6,000,000 for a new computer…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Sydney, Inc., a manufacturer of chocolate-coated mint candy acquired a patent on June 25, 2018, for…
A: Intangible assets shall be amortized over the useful life of intangible assets. Amortization…
Q: On January 3, 2015, the Pomelo Company spent P480,000 to apply for and obtain a patent on a newly…
A: The amortization is charged to intangible assets as depreciation is charged to tangible assets.
- If GlobalFoundries amortized its patent on its smartphone chip for 20 years, it would likely be
- understating amortization expense each year.
- overstating amortization expense each year.
- understating net income.
- understating its assets.
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- 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.Texon Oil is being sued for price fixing and environmental damage. The litigation started this year and is expected to last five years. There is no doubt that Texon is guilty, but the settlement cost will be between $3 billion and $22 billion. Explain how you would recommend Texon address this in its current year financial statements.Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2020, when it was acquired at a cost of $21.6 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2024. Required: Prepare the year-end journal entry for patent amortization in 2024. No amortization was recorded during the year. Record amortization expense
- Kjekk Company purchased a patent for $180,000 on May 1, 2017. The patent had a remaining legal life of 15 years, but Kjekk estimates it will contribute to cash flows for only more 10 years. What is the amortization expense for the patent on December 31, 2017?Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized thepatent on a straight-line basis since 2014, when it was acquired at a cost of $9 million at the beginning of thatyear. Due to rapid technological advances in the industry, management decided that the patent would benefit thecompany over a total of six years rather than the nine-year life being used to amortize its cost. The decision wasmade at the beginning of 2018.Required:Prepare the year-end journal entry for patent amortization in 2018. No amortization was recorded during the year.On December 31, 2012, BTS Company sold a machine to GOT Co and simultaneously leased it back for one year. The sales price of the machine was P480, 000, the carrying amount is P420,000, and it had an estimated remaining useful life of 14 years. The present value of the rental payments for one year is P35, 000. At December 31, 2019, how much should BTS Company report as deferred revenue from the sale of the machine?
- VirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the time of the purchase, the patent had a remaining legal life of 10 years. In January, 2020, Maskless spent $100,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 3 years. VirusGo's year-end is December 31. By how much is amortization expense debited in 2017? By how much is amortization expense debited in 2020? What is the net carrying value of the patent on December 31, 2019?…VirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the time of the purchase, the patent had a remaining legal life of 10 years. In January, 2020, Maskless spent $100,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 3 years. VirusGo's year-end is December 31. By how much is amortization expense debited in 2017? By how much is amortization expense debited in 2020? What is the net carrying value of the patent on December 31, 2019?…Protection Company develops a patent on a new fingerprint security technology. On January 1, 2018, this patent is registered for a cost of $30,000,000 for a period of 10 years. The company does not expect this technology to be obsolete over at least the next 15 years and intends to use it over this period. At the end of 2020, the fair value of the patent is $15,000,000. The discounted value of future cash flows (value-in-use) is $16,000,000. The Company adopts the cost model. 1. What will the cost of patent be? 2. What will the useful life be? Justify your answer. 3. Prepare the entries for 2018, 2019 and 2020. Please show the workings. Dont provide handwritten or image based answers thank you
- In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that had a remaining legal life of 14 years. Jennifer estimated that the remaining economic life would be seven years. In January 2018, the company incurred $30,000 in legal costs to defend the patent from an infringement. Jennifer's lawyers were successful, and the remaining years of benefit from the patent were estimated to be six years. What is the patent amortization expense for 2018? $9,923 $21,500 $7,615 $16,500On January 1, 2020, Blessed Company purchased a Patent for P280,000. The asset has a legal life of 10 years but due to rapidly changing technology, Blessed estimates a useful life of only 7 years. On January 1, 2022, Blessed is uncertain that the process can actually be made economically feasible, and decides to write down the patent. The future cash inflows expected from the patent will be P40,000 per year for the remaining life of the patent. The present value of these cash flows, discounted at 12% market interest rate, is P144,200. The fair value less cost to sell is P130,000.Sydney, Inc., a manufacturer of chocolate-coated mint candy acquired a patent on June 25, 2018, for 720,000. Management expects that the patent will be useful to the company for its remaining useful life of 10 years. On January 10, 2020, the company spent 120,000 in successfully defending the patent against a competitor. In 2021, management determines that the estimated remaining life of the patent should be reduced to only five years, including the current year. The company’s policy is to amortize the cost of Intangible assets using the straight-line method to the nearest month.What is the amortization expense for the year 2021? A. 72,000 B. 108,000 C. 129,000 D. 126,000
