Answered: In Colgate's December 31, 2019,…

Business

Accounting

In Colgate's December 31, 2019, Financial Position what amount should the trademark be reported?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 28CE

See similar textbooks

Related questions

Q: Maria Clara Company carried a provision of P4,000,000 in the draft financial statements for the year…

A: The total final damages to be paid by the company is P6000000

Q: During 2021, Angela Inc. was sued by a competitor for P5,000,000 for infringement of a patent. Based…

A: As per IAS 10, Events after the reporting period, The period between the reporting date and the date…

Q: 1. During 2021, Thor Company was sued by a competitor for P5,000,000 for infringement of a…

A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of…

A: As per PFRS cost of intangible asset is it's purchase price or cost incurred after technical…

Q: ABC Company is the defendant in a patent infringement suit filed by XYZ Company in 2020. At Dec. 31,…

Q: Yellow Company acquired a trademark for P10,000,000 from Orange Company on January 5, 2021. The…

A: The intangible assets are used in the business to generate revenues and these assets have a life of…

Q: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…

A: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…

Q: ROSE Company entered into a lawsuit on December 20, 2021 and recognized on the same date a provision…

A: Lets first understand the meaning of current and non-current liability. As per IAS 1 "Presentation…

Q: Colgate Co. bought a trademark from Crest Corp. on May 1, 2019 for P300,000. Its unamortized cost on…

A: The calculation of amount of trademark that should be reported in the Statement of Financial…

Q: On January 2, 2021, Dopey Enterprises, Inc. paid P35,200 in legal fees to successfully defend the…

A: On January 1, 2020 Dopey Enterprises, Inc. developed a new machine that reduces the time required to…

Q: On January 1, 2019, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000,…

A: Prepare journal entry.

Q: During 2021, Marian Company was sued by a competitor for P5,000,000 for infringement of a patent.…

A: Events which occur after reporting date ( balance sheet date ) but upto date of approval of…

Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…

A: The intangible assets of a company are referred to as all those long-term assets that do not have a…

Q: Your investigation of Samsung Corp.’s various non-current asset transactions for 2021 revealed the…

A: Intellectual property rights refers to the legal rights which protects the creators or inventors and…

Q: Steel Magnolia Incorporated purchased a trademark 7 years ago for $275,000. Steel Magnolia believed…

A: An impairment loss seems to be the amount whereby an asset's or cash-generating unit's carrying…

Q: In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of…

A: Trademark shall be measured at costs that are directly associated with its registration. In other…

Q: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…

A: Corona Company purchased a patent for P284,375 on January 2, 2015. The patent was being amortized…

Q: On May 1, 2019, Al-Quds Co. purchased a trademark with a cost of $120000. The trademark is…

A: Impairment of assets means reducing the book value of assets when carrying amount is more than…

Q: On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued…

A: If at the acquisition date sufficient information is not available then the net assets &…

Q: On June 1, 2021, Oriole & Sons sold equipment to James Landscaping Service in exchange for a…

A: Given: Fair value = $97,200 Face value of note = $112,800 Period = 12 months

Q: Tang company is the defendant in a lawsuit filed by wong in 2019 disputing the validity of copyright…

A: SOLUTION CONTINGENT LIABILITY IS A LIABILITY OR A POTENTIAL LOSS THAT MAY OCCUR IN FUTURE DEPENDING…

Q: During 2020, Sienar Systems, Inc purchased Correalian Drives, Inc. (one of its suppliers) using the…

A: The question carries only goodwill amount, impairment of goodwill is needed as well. If we assume…

Q: On January 1, 2021, ABC Company purchased P600,000, a trademark with an estimated useful life of 16…

A: As per IAS 38, any subsequent expenditure related to the intangible asset that has increased its…

Q: for 2021 revealed the following information: Samsung Corp.’s reported a Trademark at P520,000 at…

A: Goodwill refers to the concept of evaluating the value of the company on the basis of its reputation…

Q: Required: Prepare the journal entry to record the amortization expense on Dec 31, 2020

A: Cost of Trademark = $160000 Useful Life = 10 Years Annual Amortization = Cost / Useful Life =…

Q: ROSE Company entered into a lawsuit on December 20, 2021

A: Lets 1st perceive the which means of current and non-current liability. As per IAS one "Presentation…

Q: On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the…

A: Tradename is a form of intangible assets in the business, which is the part of balance sheet or…

Q: On January 1, 2020, Russell Company purchased a copyright for $2,000,000, having an estimated useful…

A: Intangible assets is recognized at purchase cost and legal fees paid in a successful defense and any…

Q: Hepburn Company bought a copyright for $120,000 on January 1, 2018, at which time the copyright had…

A: In straight line depreciation we assume there is uniform annual depreciation of assets and it is…

Q: During 2019, Analee Company filed suit against another entity seeking damages for patent…

A: A contingent asset is an economic gain that is contingent on future events that are mostly outside a…

Q: On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued…

A: Goodwill can be defined as an intangible asset which arises when one company acquires another…

Q: amount should the current liability be presented in the statement of financial position?

A: Current liability is the amount of liability, the payment of which is due within a year.

Q: On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued…

A: If at the acquisition date sufficient information is not available then the net assets &…

Q: On January 30, 2019, a suit was filed against Frazier Corporation under the Environmental Protection…

Q: Using the information below for Baxter Corporation, prepare all necessary journal entries ONLY on…

A: 00Lega Cost for purchase of copyright is added to copyright account. It means the legal cost for…

Q: NovakLimited has a trademark with a carrying amount of $84,000, and expected useful on December 31,…

A: A trademark seems to be an easily recognizable badge, phrase, word, or symbol that denotes a certain…

Q: On January 30, 2021, XYZ Corporation, a non-VAT registered company, purchased from ABC Corporation,…

A: SOLUTION- EXPLANATION- VAT RATE = 12% SALES (A) 280000 OUTPUT VAT (B)= (280000 / 1.12 )…

Q: During 2020, Lomi, Co.filed suit against Ocean, Inc seeking damages for patent infringement. At…

A: Contingent asset refer to such assets whose existence is uncertain because it is dependent of…

Q: Jerely, Inc. had the following noncurrent asset account balance at December 31, 2019: Patent…

A: Intangible Assets Intangible Assets are the assets that do not have any physical existence, that…

Q: On January 1, 2018, Don Company purchased a patent from an original patentee for 2,400,000. The…

A: The patent is the intangible fixed asset and hence required tobe amortised as per…

Q: 1. Compute for the current liability to be presented in the financial position a. P12 million…

Q: Amway Corporation acquires a used desk on December 26, 2019, and places the desk in service on…

A: IRC deduction is better than depreciation.

Q: Sheridan Company purchased equipment in 2019 at a cost of $917000. Two years later it became…

A: Required journal entry:

Q: On January 1, 2019, Jericho Company purchased a patent for P7,140,000. The patent is being amortized…

A: Answer is option B) 4,896,000

Q: During 2023, Lowry Company was used by a competitor for P5,000,000 infringement suit of a trademark.…

A: Introduction:- Financial statements are written documents that explain a company's activities and…

Q: On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to a…

A: Formula: Total amortization deduction = Amortization for patent + Amortization for Goodwill

Q: On May 1, 2019, Al-Quds Co, purchased a trademark with a cost of $120000, The trademark is…

A: Impairment of assets means reducing the book value of assets when carrying amount is more than…

Q: On December 31, 2019, Aquinas Company had equipment that had a carrying amount of $300,000 which the…

A: Impairment of assets means reducing the book value of assets when carrying amount is more than…

Q: During 2020, Marian Company was sued by a competitor for P5,000,000 for infringement of a patent.…

A: The word "accrued liability" is defined as a business expenditure that has been generated but has…

Question

Colgate Co. bought a trademark from Crest Corp. on May 1, 2019 for P300,000. Its unamortized cost on Crest's accounting records was P112,000. Colgate decided to amortize the trademark over its legal life from the date of purchase. In Colgate's December 31, 2019, Financial Position what amount should the trademark be reported?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial reporting purposes, the asset has a 4-year life with no residual value and is depreciated by the straight-line method beginning in 2019. For tax purposes, the asset is depreciated under MACRS using a 5-year recovery period. Prior to 2019, Conley had no deferred tax liability or asset. The difference between depreciation for financial reporting purposes and income tax purposes is the only temporary difference between pretax financial income and taxable income. The current income tax rate is 30%, and no change in the tax rate has been enacted for future years. In 2019 and 2020, taxable income will be higher or lower than financial income by what amount?
Mystic Pizza Company purchased a patent from Prime Pizza Plus on January 1, 2019, for 72,000. The patent has a remaining legal life of 9 years. Prepare the journal entries to record the acquisition and the amortization for 2019, assuming Mystic Pizza amortizes its patents using the straight-line method over the life of the asset.
Steel Magnolia Incorporated purchased a trademark 7 years ago for 275,000. Steel Magnolia believed the trade-mark would have an indefinite life. At the end of 2020, the corporation believes the fair value of the trademark is 189,000. Record the impairment loss for Steel Magnolia.
Petes Petroleum, Inc., an SEC registrant with a calendar year-end, is in the business of constructing and operating offs] lore oil platforms. Petes Petroleum is required legally to dismantle and remove the platforms at the end of their useful lives, which is estimated to be 10 years. On January 1, 2019, Pete constructed and began operating an offshore oil platform off the coast of Brazil. The total capitalized cost to construct the platform was 3,700,000. In addition, while the future cost of dismantling the oil platform is difficult to estimate, Pete believes there is a 40% chance that the future cost will be 1,425,000, a 40% chance it will be 1,650,000, and a 20% chance that it will cost 2,125,000. The appropriate discount rate is 12%, and Pete uses the straight-line method of depreciation. Required: 1. Prepare the journal entries that Pete should record in 2019 related to the oil platform. 2. Prepare an amortization schedule for the asset retirement obligation. 3. Next Level Prepare a table showing the effect of accounting for the asset retirement obligation on assets, liabilities, shareholders equity, and net income relative to accounting for the associated costs at the end of the assets service life when the expenditure is made.