Blue Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Blue purchased two copyrights during 2023. The first copyright was purchased on February 1 for $15,050 and was expected to have a useful life until the end of December, 2025. The second copyright was purchased on July 1 for $105,600 and was expected to have an indefinite useful life. Blue's fiscal year-end was December 31. On July 1, 2024, Blue paid $9,180 in legal fees to successfully defend the first copyright in court. On September 1, 2024, Blue determined that the second copyright would no longer have an indefinite useful life, and in fact would have a useful life of another 8 years, beginning September 1, 2024. On April 1, 2025, Blue sold the second copyright for $115,400. Prepare the journal entries on the books of Blue to record the above transactions. (Hint: don't forget the year-end amortization entries). (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)

Blue Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Blue purchased two copyrights during 2023. The first copyright was purchased on February 1 for $15,050 and was expected to have a useful life until the end of December, 2025. The second copyright was purchased on July 1 for $105,600 and was expected to have an indefinite useful life. Blue's fiscal year-end was December 31. On July 1, 2024, Blue paid $9,180 in legal fees to successfully defend the first copyright in court. On September 1, 2024, Blue determined that the second copyright would no longer have an indefinite useful life, and in fact would have a useful life of another 8 years, beginning September 1, 2024. On April 1, 2025, Blue sold the second copyright for $115,400. Prepare the journal entries on the books of Blue to record the above transactions. (Hint: don't forget the year-end amortization entries). (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)

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 12E

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On January 1, 2017, Reno Company purchased a copyright for $1,000,000, having an estimated useful life of 16 years. In January 2021, Reno paid $150,000 for legal fees in a successful defense of the copyright. What should be the amount of copyright amortization expense for the year ended December 31, 2021?
Greenfield Incorporated is a publicly traded company that has a calendar year end. During the year 2020, the company had the transactions listed below. For this assignment, complete the following requirements: Part 1 On April 1, 2020, Greenfield Incorporated purchased machinery valued at $300,000. The estimated life of the machinery is 10 years. The machinery also has a salvage value of $60,000. Over the life of the machine, the estimated hours that the machine will be used is 30,000 hours. The corporation is comparing depreciation calculations using several acceptable depreciation methods. Compute the depreciation expense for the machine for years 2020 and 2021 using the following methods: Year 2020 Year 2021 A Straight-line (with half-year convention) $ $ B 200% declining balance (with half-year convention) $ $ C 150% declining balance (with half-year convention) $ $ D Units-of-output method (Hours used: 2,600 hrs in Year 2020 and 6,000 in Year 2021) $ $ E…