Aramex Company purchased a patent from Datco Company for $220,000 on July 1, 2012. Expenditures of $68,000 for successful litigation in defense of the patent were paid on July 1, 2015. Aramex Company estimates that the useful life of the patent will be 20 years from the date of acquisition. Instructions : Prepare a computation of the carrying value of the patent at December 31, 2015.

Q: Belkin Plc purchased a patent for $135,000 on September 1, 2016. It had a useful life of 10 years.…

A: First, compute the carrying value of patent on January 1, 2018 and then add the cost of defending…

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…

A: Above mentioned patent meets the recognition criteria of intangible assets , it is a self generated…

Q: STARK INDUSTRIES reports the following patents on its December 31, 2019 statement of financial…

A: Financial position is an essential part of Accounting , as it gives clear cut picture of a company's…

Q: How much is the amortization expense for the year 2018? 2. What is the patent carrying value at…

A: Amortization of Patent Right

Q: On January 1, 2015, Moose Co. purchased for $360,000 a patent that had been granted two years…

A: Introduction: Intangible Asset: Assets which cannot seen or touch called Intangible assets. Example:…

Q: Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of…

A: As per the accounting standards the carrying value of patent is equal to the purchase cost of…

Q: On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the…

A: The amortization expense is charged on intangible assets as reduced value of asset with time passed.…

Q: On January 1, 2017, Jayjay Company, a large company, purchased a patent for a new consumer product…

A: Amortization of an intangible asset is done for the period of its useful life. However, in case an…

Q: MG Corporation acquired a patent for a new product for $260,000 on 2 January 2013 with a useful life…

A: Solution: Annual amortization expense on Patent = Cost of patent / Estimated useful life =  $260,000…

Q: On January 1, 2011, the account balances of Miami Company showed patent cost of  P1,920,000 and…

A: Carrying Amount of Intangible Asset as on January 1 2011 =Patent cost - Accumulated amortization…

Q: Shah Enterprises, acquired a new equipment on April 2014. The cost of the equipment was $160,000…

A: Under the half-year convention, the depreciation is charged for half-year in the year of purchase of…

Q: During 2017, Summer Company spent P500,000 for the research and development of its patent. On…

A: Patent is an intangible fixed asset.  It is amortised every year as…

Q: A company purchased a patent on January 1, 2014, for $1,992,000. The patent's legal life is 20 years…

A: Patents- Cost incurred to legally protect product and process ideas resulting from R&D.…

Q: Munn Inc. has transactions and other information relating to intangible assets as follows. . Munn…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Trademarks were previously acquired for $200,000 on January 1, 2018. Estimated useful life at the…

A: Given: General Products successfully defended these trademarks at a legal cost of $45,000. The new…

Q: Ice Giant Company purchased a patent on January 1, 2015 for P6,000,000. The original useful life was…

A: Depreciation , amortization , depletion all means the fall in value of assets due to one reason or…

Q: Red Co. has a patent on a communication process. The company has amortized the patent on a…

A:

Q: On September 1, 2015, Johnas, Inc. acquired a patent for $600,000. The patent has 16 years remaining…

A: Patents are intangible assets acquired as a right to use any formula, method or process. These are…

Q: In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that…

A: Amortization expense: A charge created on intangible asset for its use over the life of asset. It is…

Q: On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the…

A: The amortization expense is charged on the intangible assets such as Patent, goodwill, etc.

Q: Nieland Industries had one patent recorded on its books as of January 1, 2020. This patent had a…

A:

Q: STARK INDUSTRIES reports the following patents on its December 31, 2019 statement of financial…

A: Introduction:- Cash flow refers to the total amount of cash and cash equivalents transferred in and…

Q: On January 1, 2016, Gordon Company purchased a patent for $420,000 from an inventor who had…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: A company acquired patent right on July 1, 2018 for P2,000,000.  The asset has a legal life of 15…

A: A company acquired patent right on July 1, 2018, for P2,000,000.  The asset has a legal life of 15…

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…

Q: Danika Manufacturing purchased a patent from Clayton Industries on January 1, 2015, by paying…

A: Patent gives the right to use the formula to manufacture the products or to make the software Patent…

Q: e use of

A:

Q: Katana Company purchased a patent on January 1, 2014 for P6,000,000. The original life was estimated…

A: “Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: VirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: On January 2, 2016, Dec Company purchased a patent for a new consumer product for P900,000. patent…

A: Patents are intangible assets (those which do not have physical appearance). Intangible assets are…

Q: Stars Corporation incurred a P198,900 of research and development costs to develop a product for…

A: January 2, 2017: Legal cost and other costs of patent = P44,200 Useful economic life = 20 years On…

Q: Crystal Company summarized the following transactions pertaining to its patent. 2012 Spent P250,…

A: Introduction A patent is an exclusive right that is given to that new product or new invention that…

Q: On January 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the…

A: Amortization of the Patent: Amortization of the Patent is the tactic in which the cost of the patent…

Q: 0,000, and accumulated amortization of P 60,000. The Patent is being amortized for its useful life…

A: Solution Opening balance of Patent = 120,000 Accumulated Amortization = 15,000 (120,000 / 8 years…

Q: On January 1, 2019, the account balances of Acelle Company showed patent cost of P1,920,000 and…

A: Intangible assets: - Intangible assets are those assets of the company which cannot be touched or…

Q: On January 1, 2022, Proton, Inc. purchased a patent giving it exclusive rights to manufacture a new…

A:

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: Brazen Company purchased a patent on January 1, 2015 for P6.000,000. The original life of the patent…

A: Value of patent amortization from 1 Jan, 2015 to 1 Jan, 2020= 6,000,000*5/15 =2,000,000 Since the…

Q: At the beginning of the current year, Milk Tea Company acquired a trademark for P2,000,000. The…

A: Impairment loss = Carrying cost - Value in use Carrying cost = P2,000,000 Value in use ( present…

Q: On 1 July 2017, Entity A purchased a chemical machine from Entity B on credit.  The purchase price…

A: Series of Events happened for Entity A : (1) 1st July, 2017 - Purchase of Chemical machine on Credit…

Q: In January of 2021, the Phillips Company purchased a patent at a cost of $100,000. The company…

A: Cost of patent = $100,000 Useful life = 10 years

Q: On January 1, 2021, Tabitha Designs purchased a patent for $294,000 giving it exclusive rights to…

A: The answer is as fallows

Q: XYZ Corporation incurred the following costs in 2020: • XYZ Corporation purchased a patent from ABC…

A: Intangible assets include: Goodwill  Patent Copyright Trademark

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: Merca Inc. has provided the auditors with the ff. information:  - A patent was purchased on January…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.  Patents are…

Q: On January 4, 2015, a research project undertaken by Nasja Ltd. was completed and a patent was…

A: According to IFRS 18a: "An intangible asset is an identifiable non-monetary resource without…

Q: A patent was acquired by Renfro Corporation on January 1, 2014, at a cost of $90,000. The useful…

A: (a) Amortisation expense for the year 2014 Acquisition cost of patent = $90,000 Useful life of the…

Q: .. Danika Manufacturing purchased a patent from Clayton Industries on January 1, 2015, by paying…

A: Carrying Amount = Cost - Accumulated Depreciation Intangible Assets are initially measured at Cost…

Q: Grande Machinery Company purchased, for cash, a $60,000 custom machine on January 1, 2015. The…

A: (1) Journal entry in the book of Grande Machinery Company.

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.