Calico Inc. purchased a patent on a new drug. The patent cost $17,000. The patent has a life of 22 years, but Calico only expects to be able to sell the drug for 17 years. A. Calculate the amortization expense. $fill in the blank B. Record the journal for the first-year expense. If an amount box does not require an entry, leave it blank.     fill in the blank fill in the blank     fill in the blank fill in the blank

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A: The right answer is option c.36,000

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A: Amortization is a kind of deduction in the value of intangible asset. is considered as an expense…

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A:

Q: What is the recorded cost of the patent? Total Capitalized cost=

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A: Patent is an intangible asset that indicates the legal right of any person or entity over a thing.

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A: Straight line depreciation rate=100%Estimated useful life=100%3 years=33.33%

Q: On January 1, 20x1, Entity A purchases a patent from Entity B for 300,000. Entity B, has helped the…

A: The patent is an intangible asset that is amortized over its useful life but not more than its legal…

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A: Journal entry is a record of financial transaction in the books of accounts maintained by an…

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A: The amortization expense of patents will be calculated on the basis of estimated useful time of…

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A: Amortization expenses are charged to the intangible assets. basically, it reflects the consumption…

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A: Amortization refers to a non-cash expense that is charged on the assets to lower the book value of…

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A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization…

Q: SE9-7. Amortization Expense Smith & Daughters obtained a patent for a new optical scanning device.…

A: Calculation of amortization expenses: Amortization Expenses = Patent CostUseful life=$9000012=$7,500…

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A: Amortization is the diminution in the worth of intangible asset due to its limited life etc.

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A: Patent amortization is a system of recording or charging price, through which companies allocate the…

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A: Amortization costs are the costs of long-term assets (such as computers and automobiles) over the…

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A: working notes: Amortization expenses=  (110,000*1/5) = 22,000

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A: Double declining method percentage = 2 * straight line depreciation percentage

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A: Annual amortization expense  =  $        1,100

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A: The patents are usually amortized over the usual course of life or the number of years they are…

Q: Higgins Company purchased a patent from Monroe Limited for $203,400 on January 1, 2020. The patent…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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A: Amortization is the diminution in the worth of the intangible asset as per the life of the asset…

Q: Using the following unrelated situations. A. A patent with a 10-year remaining legal life was…

A: Given,   Patent A Legal Life = 10 years Useful Life = 8 years Cost = $ 280000   It is amortized over…

Q: Using the following unrelated situations. A. A patent with a 12-year remaining legal life was…

A: Annual Amortization Expense = Cost of intangible asset / Useful Life

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A: Correct option: d. 195,520

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A: This Numerical has covered the concept of Amortization Accounting. Amortization is a method of…

Q: Kenzie Company purchased a 3-D printer for $345,000. Although this printer is expected to last for…

A: Depreciation rate = (100% / 3 years)*2                              = 66.67%

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A: Double Declining method of depreciation: It is a method in which assets are depreciated at twice the…

Q: Stephan Curry, Inc., spent $68,000 in attorney fees while developing the trade name of its new…

A:

Q: On January 1 of this year, Diaz Boutique pays $105,000 to modernize its store. Improvements include…

A: Organization has incurred $105000 to modernize its stock. It was treated as cost on improvements.…

Q: Amortization Expense Los Altos, Inc. obtained a patent for a new optical scanning device. The fees…

A: Amortization Expense: The concept of amortization expense is similar to the depreciation expense.…