I need the answer as soon as possible Question 1During 2017 Holy land Corporation spent $150,000 in research costs. As a result a newproduct was patented. The patent was obtained on October 1, 2017. The company paid$24,000 on October 1, 2017 as legal cost for the patent. It had a useful life of 10 years andlegal life 20 years.On January 1, 2019, Holy land spent $9,000 to successfully defend the patent in a lawsuit.Holy land feels that as of that date, the remaining useful life is 5 years.At December 31, 2019 the recoverable amount of the patent was $20,000, journalizethe entry to report the impairment loss if any.What amount should be reported for patent amortization expense for 2020?12

In accordance with IFRS 38 "Intangible Assets", Any costs which are incurred to defend a patent will…

Answered: During 2017 Holy land Corporation spent…

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 7MC

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Mm.1. Bethany incurred $60,000 in research and experimental costs for developing a specialized product during July 2022. Bethany went through a lot of trouble and spent $30,000 in legal fees to receive a patent for the product in August 2024. Bethany expects the patent to have a remaining useful life of 10 years. Note: Do not round intermediate calculations. b. How much patent amortization expense would Bethany deduct in 2024? c. If Bethany chose to capitalize but not amortize the research and experimental expenses she incurred in 2022, how much patent amortization expense would Bethany deduct in 2024?
V4. 3. Vaden Company purchased a patent from Williams Co. for $260,000 on January 1, 2016 when there was 15 years remaining in the legal life of the patent. Vaden estimates that the useful life of the patent will be 10 years from the date of acquisition. Expenditures of $25,000 for successful litigation in defense of the patent were paid on January 1, 2022. Required: a. Compute the carrying value of the patent at December 31, 2022. b. At the beginning of 2023, new market research indicates that the fair value of the patent is $90,000. Estimated future cash flows from the patent are $94,000 on January 1, 2023. Determine if the patent is impaired and, if so, prepare the journal entry necessary.
Exercise 12-16 b-c Blossom Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $325,500 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $115,500. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $17,500. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit…
Questions 1 PT Sarmah obtained a patent in January 2019, at a cost of $ 200,000,000. Estimated useful life 8 year. The company incurred additional costs related to this patent in January 2020, amounting to $ 20,000,000 At the end of 2021 there was an economic downturn due to the pandemic, and a test for impairment of the fair value of int assets was carried out according to an independent appraiser, the recoverable value of the patent is $ 24,000,000. Instructions: Prepare journals at the end of 2019 to 2021 Questions number 2 in image Please answers type not handwriting, thank you the book I use: Intermediate Accounting, Kieso, ifrs Edition, Fourth Edition
Question 1 On January 1, 2017 Baker purchased a new stamping machine for its plant. This new piece of equipment cost $120,000 and was recorded in Baker's accounting system with a $120,000 debit to the Equipment account and a $120,000 credit to the Cash account. Baker estimates that the stamping machine will last 5 years and will have no value at the end of those 5 years. At the end of January, February, March, April, and May, Baker made the correct depreciation adjusting entries. Select the June 30, 2017 adjusting entry Baker should make for June’s depreciation: (A) Accumulated depreciation: 2,000 ________ depreciation: expense _______ 2,000 (B) depreciation expense 12,000 _______ accumulated depreciation: ______ 12,000 (C) depreciation expense 2,000 ______ accumulated depreciation ______ 2,000 (D) depreciation espense 24,000 ________ cash _______ 2,000 loss of…
PROBLEM 3 Green Vegetable Mfg. Co. purchased equipment on January 1, 2019, at a cost of $800,000. The equipment is expected to have a service life of ten years, or 40,000 hours, and a residual value of $70,000. During 2019, the equipment was operated for 5,000 hours, and during 2020, it was operated for 7,000 hours. Required: Calculate depreciation expense (to the nearest whole dollar) for this machine in 2019 and 2020 under each of the following depreciation methods: *Straight-line method *Activity method (hours) *Double declining balance method Input only the answer on the Excel Template file. You may work calculations by hand on paper or in Excel. Your choice.
4.Chair Leader Co. purchased a patent on January 1, 2023 for ₱120,000. The patent had a remaining useful life of 10 years at that date. In January of 2024, Chair incurred ₱54,000 in acquiring another patent that clearly extended the existing patent’s life to December. 31, 2015. What amount of amortization expense would Chair record in 2024? 12,000 13,500 14,500 18,000
Q) A construction company purchases $50,000 worth of equipment on July 1, 2014. The company estimates that the equipment will have a salvage value of $5,000 and its useful life will be 9 years. The company’s accounting year ends on December 31 of each year. What is the total depreciation for the equipment at the end of 2014? a. $ 5,000b. $ 5,556 c. $ 10,000 d. $ 2,500 e. $ 2,778
3- During 2018, Matsumura Ltd. Spent ¥180,000 in research costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 31, 2018, and had a legal life of 20 years and a useful life of 9 years. Legal costs of ¥25,000 related to the patent were incurred as of October 31, 2018. (Amounts are in thousands.) Instructions Prepare all journal entries required in 2018 and 2019 as a result of the transactions above.
Exercise 12-9 During 2013, Bridgeport Corporation spent $148,320 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2013, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $23,760 related to the patent were incurred as of October 1, 2013. Prepare all journal entries required in 2013 and 2014 as a result of the transactions above. (Round answers to 0 decimal places, e.g. 8,564. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2013 (To record research and development expenses) 2013 (To record legal…
Problem 4 XYZ Company purchases a machine On January 1, 2014 for $100,000 with an estimated residual value of $10,000 and useful life of four years. Use the double-declining balance method. Prepare the journal entry to record depreciation for 2016. If possible, compute the carrying value at the end of 2016. Determine the amount of depreciation expense in 2017.
Crystal Company summarized the following transactions pertaining to its patent. 2012 Spent P250, 000 for the research and development of the patent 2013 Jan. 1 Paid P60, 000 to apply for and obtain right to the patent. The useful life of the patent is 10 years. 2014 Jan. 1 Purchased for P600, 000 a new patent that is expected to prolong the life of the original patent by 6 years. 2015 Dec. 31 A competitor obtained rights to a patent which rendered the entity’s patent obsolete Required: Prepare all entries relating to the patent from 2012 to 2015. rules of answering the problem

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