Knowledge Check 01 Aplington Company purchased a copyright for $25,000 and intends to use it for 25 years. Prepare the appropriate journal entry to record the annual amortization of the copyright. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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- FIXED ASSET 4 On July 1, 2019, PT ABC purchased a copyright of tutorial application for $400,000. It is estimated that the copyright will have a useful life of 8 years without residual value. Instruction: a. Journalize amortization expense for 2019 using straight line method. b. What is the balance of Copyrights on balance sheet of December 31, 2020?Sinise Industries acquired two copyrights during 2020. One copyright related to a textbook that was developed internally at a cost of $9,900. This textbook is estimated to have a useful life of 3 years from September 1, 2020, the date it was published. The second copyright (a history research textbook) was purchased from University Press on December 1, 2020, for $24,000. This textbook has an indefinite useful life. How should these two copyrights be reported on Sinise's balance sheet as of December 31, 2020?Presented below is information related to copyrights owned by Taylor Corporation atDecember 31, 2020.Carrying amount 7,000,000Expected future net cash flows 6,200,000Fair value 3,300,000Assume Taylor will continue to use this asset in the future. As of December 31, 2020,the copyrights have a remaining useful life of 5 years.Instructions(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020.(b) Prepare the journal entry to record amortization expense for 2021.(c) The fair value of the copyright at December 31, 2021 is $3,400,000. Prepare thejournal entry, under GAAP, necessary to record this increase in fair value.
- answer needed ASAP Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2020. Cost $6,000,000 Carrying amount 5,200,000 Expected future net cash flows 4,700,000 Fair value 3,200,000 Assume Wamser will continue to use this asset in the future. As of December 31, 2020, the copyrights have a remaining useful life of 5 years. a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. b. Prepare the journal entry to record amortization expense for 2021. c. The fair value of the copyright at December 31, 2021 is $2,500,000. Prepare the journal entry (if any) necessary to record this increase in fair value.Presented below is information related to a copyright owned by Mare Company at December 31, 2020. Cost $8,600,000 Carrying amount 4,300,000 Expected future net cash flows 4,000,000 Fair value 3,200,000 Assume that Mare Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Instructions a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. The company does not use accumulated amortization accounts. b. Prepare the journal entry to record amortization expense for 2021 related to the copyright. c. The fair value of the copyright at December 31, 2021, is $3,400,000. Prepare the journal entry (if any) necessary to record the increase in fair value.On January 1, 2022, Irwin company purchased the copyright to quick computer tutorials for $120,000. it is estimated that the copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2022 would be. a. $0 b. $24,000 c. $60,000 d. $120,000
- Kleen Company acquired patent rights on January 10 of Year 1 for $344,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $17,000. If required, round your answers to the nearest dollar. Question Content Area a. Determine the patent amortization expense for Year 4 ended December 31.$fill in the blank 88c643fcdfe1040_1 Feedback Area Feedback For intangible assets with finite lives, a company uses the straight-line method to calculate amortization. If a company successfully defends a patent it becomes part of the cost of the patent. If the company loses a lawsuit regarding a patent infringement, then the patent is written off. Question Content Area b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank. blank Amortization Expense-Patents…Milano Gallery purchases the copyright on a painting for $418,000 on January 1. The copyright is good for 10 more years; after which the copyright will expire and anyone can make prints. The company plans to sell prints for 11 years. Prepare entries to record the purchase of the copyright on January 1 and its annual amortization on December 31.Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2014. Cost $2,700,000 Carrying amount 2,350,000 Recoverable amount 1,500,000 Assume Wamser will continue to use this asset in the future. As of December 31, 2014, the copyrights have a remaining useful life of 5 years. Instructions (a Prepare the journal entry to record amortization expense for 2015. (b) The recoverable amount of the copyright at December 31, 2015 is $1,600,000. Prepare the journal entry necessary to record this increase in fair value.
- Presented below is information related to copyrights owned by Fielding Company at December 31, 2020. Cost $10,450,000 Carrying amount 6,420,000 Expected future net cash flows 5,000,000 Fair value 3,850,000 Assume that Fielding Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Instructions Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. The company does not use accumulated amortization accounts. Prepare the journal entry to record amortization expense for 2021 related to the The fair value of the copyright at December 31, 2021, is $4,800,000. Prepare the journal entry (if any) necessary to record the increase in fair value.Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $360,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $18,000. If required, round your answers to the nearest dollar. Question Content Area a. Determine the patent amortization expense for Year 4 ended December 31.$fill in the blank bc4756fc8040fa8_1 Question Content Area b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select -Y2 WATERVILLE Company bought a Copyright for $20,800,000 on 1 January 201% for cash The expected total useful life of the Copyright is 10 years. Assune that the Residin) Value of the Copyright is always 50 (ic., Zero). On T January 2019 WATERVILLE Company Series on an Impairment lest Copyright The Value in Use of the Copyright is $10.000/000. the Fair Value is SoJOANUA and the costs to sell are $500,000, Assume that the expected total usefal life of the Copyrig remains unchanged. On 1 January 2020, the Recoverable Amount of the Copyright is $16,000,000. The firm uses Straight Line Amortization. ABsume thud the Accounting year- end is 31 December. Assume that the expected total useful life of the Copyright is always 10 years and remains unchanged. Required: i. Show the Journal Entries required by 1 :1 January 20 (8) if. 31 December 2018 ili. 1 January 2019 iv. 31 December 20 9 V. 1 January 2020. vi 31 December 2020 ATERVILLE Company on: Clearly show all workings. b. Show the Financial…