Company A purchased a patent from Company B on 6/30/2021 for $660,000. The useful life of the patent is estimated to be six years. On 12/31/2024 the fair market value of the patent was $250,000, while the undiscounted future net cash flows related to the patent were $300,000. Q1. Please record the journal entry, if necessary, to record impairment of the patent on 12/31/2024
Company A purchased a patent from Company B on 6/30/2021 for $660,000. The useful life of the patent is estimated to be six years. On 12/31/2024 the fair market value of the patent was $250,000, while the undiscounted future net cash flows related to the patent were $300,000. Q1. Please record the journal entry, if necessary, to record impairment of the patent on 12/31/2024
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
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 6RE
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Company A purchased a patent from Company B on 6/30/2021 for $660,000. The useful life of the patent is estimated to be six years. On 12/31/2024 the fair market value of the patent was $250,000, while the undiscounted future net
Q1. Please record the
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