On January 1, 2021, Tabitha Designs purchased a patent for $294,000 giving it exclusive rights to manufacture a new type of synthetic clothing. While the patent had a remaining legal life of 15 years at the time of purchase, Tabitha expects the useful life to be only eight more years. In addition, Tabitha purchased equipment related to production of the new clothing for $146,000. The equipment has a physical life of 10

Q: Pina Colada Industries Ltd. had one patent recorded on its books as at January 1, 2020. This patent…

A: As per IAS 38, Intangible Asset Only cost incurred in respect of development phase are to be…

Q: Jill bought a patent from GIA Company on January 01,2021 for P90,000 with remaining life of 15 years…

A: Patents are a type of intangible asset that the business is having. It can not be seen. It can only…

Q: VirusGo Inc. purchased a patent on January 1, 2017, for $800,000 for non-fogging face masks. At the…

A: The intangible assets are not depreciated every year but get amortized with the passage of time.

Q: Wildhorse Corporation purchased a patent for $ 148500 on September 1, 2019. It had a useful life of…

A: Formula: Amortization expense = ( Asset cost - Salvage value  ) / Useful life

Q: Oil Products Company purchases an oil tanker depot on January 1, 2020, at a cost of $600,000. Oil…

A: a. Prepare the journal entries to record the depot and the asset retirement obligation for the depot…

Q: Discuss the implication of the transactions and state the journal entries on January 1, 2020

A:

Q: On January 1, 2015, Moose Co. purchased for $360,000 a patent that had been granted two years…

A: Introduction: Intangible Asset: Assets which cannot seen or touch called Intangible assets. Example:…

Q: Bassinger Company purchases an oil tanker depot on January 1, 2022, at a cost of $600,000. Bassinger…

A: Journal entry is the book of original entry where first transactions are recorded in the books of…

Q: Pete’s Petroleum, Inc., an SEC registrant with a calendar year-end, is in the business of…

A: 1. Expected Future Expenditure                   Expenditure Probability Amount…

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, 2017, Jayjay Company, a large company, purchased a patent for a new consumer product…

A: Amortization of an intangible asset is done for the period of its useful life. However, in case an…

Q: What entry would you use to account for the initial transaction and why do you have a different…

A: As can be seen from the question above, Jaecke has entered into an agreement with Hydraulic, Inc. to…

Q: On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been filed eight…

A: Journal entries of Company F for 2021  and 2022. For 2021: Date Particulars Debit Credit Jan 4,…

Q: On January 1, 2020, ABC Co., a well-known basketball, licenses the use of its name and logo to a…

A: Revenue recognition principle is based on the accrual concept. It states that when the revenue is…

Q: During 2017, Summer Company spent P500,000 for the research and development of its patent. On…

A: Patent is an intangible fixed asset.  It is amortised every year as…

Q: Yernar uses special plastic wrapping equipment in its shipping business. The equipment was purchased…

A: Hey, since there are multiple requirements posted, we will answer first two requirement. If you want…

Q: In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that…

A: Amortization expense: A charge created on intangible asset for its use over the life of asset. It is…

Q: BioDrugs Ltd. purchased a patent for a new drug for $500,000 on January 1, 2020. The patent was…

A: In the given question, Bio Drugs Ltd purchased a patent for a new drug worth $5,00,000 on January 1,…

Q: Late in December 2021, XYZ Corp. (XYZ), a publicly traded company, completed the manufacture of 600…

A: Journal entry A journal entry refers to the recording of the transactions in the books of accounts.…

Q: Monty Company purchases an oil tanker depot on January 1, 2020, at a cost of $ 552,300. Monty…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Nieland Industries had one patent recorded on its books as of January 1, 2020. This patent had a…

A:

Q: RK Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and…

A: Prime cost method: It is also called as straight-line method; in this method, the value of an asset…

Q: Crane Company purchases an oil tanker depot on January 1, 2020, at a cost of $639,700. Crane expects…

A: Machine or fixed assets means the asset which is used by company for many years to come for the…

Q: December 31, 2022, the product was removed from the market under governmental order because of a…

A: This question deals with the IAS 38 "Intangible asset" As per IAS 38, intangible asset needs to…

Q: On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been filed eight…

A: Given the following information: On January 4, 2021, the Franc Company purchased for $27,000 a…

Q: A. RK Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and…

A: Prime Cost Method Under using Prime cost method the decline value of the assets it deduct the value…

Q: On April 20, 2020, Wilhamette Incorporated purchased the right to remove timber from a 20,000-acre…

A: Any right purchased which will be used in coming years is a intangible assets which is to be…

Q: On January 2, 2016, Dec Company purchased a patent for a new consumer product for P900,000. patent…

A: Patents are intangible assets (those which do not have physical appearance). Intangible assets are…

Q: The Western Company, a company that follows IFRS, provided you with the following information about…

A: Given,  On Jan. 1, 2020 : Acquired Patent for Cash = $ 45,000

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: On January 2, 2016, David Corporation purchased a patent for $500,000. The remaining legal life is…

A:

Q: Crane Company purchases an oil tanker depot on January 1, 2020, at a cost of $639,700. Crane expects…

A: Loss on Asset retirement obligation's settlement = Amount paid - Estimated Asset retirement…

Q: On January 1, 2021, Larry Company purchased a patent for an immune system boosting drink called…

A: Carrying amount = Cost of asset - Accumulated depreciation = P800,000 - 0 = P800,000 Expected cash…

Q: On January 1, 2017, Honey company acquired a patent for a drug with a remaining legal and useful…

A:

Q: RK Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and…

A: Prime cost method: It is also called as straight-line method; in this method, the value of an asset…

Q: On January 1, 2022, Blessed is uncertain that the process can actually be made economically…

A: Depreciation is calculated on the basis of the entity's estimates of useful life and legal life is…

Q: Several years ago Walker Security purchased for $120,000 a well-known trademark for padlocks and…

A: Amortization is the writing off of the intangible assets’ value over a period of time like the…

Q: Swifty Corporation purchases a patent from Wildhorse Company on January 1, 2020, for $45,000. The…

A: Journal: It refers to the account which records all the financial transactions pertaining to a…

Q: Cullumber Limited purchased a machine on account on April 1,2021, at an invoice price of $332,350.…

A: Depreciation- The term depreciation refers to an accounting process used to distribute the price of…

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: Brazen Company purchased a patent on January 1, 2015 for P6.000,000. The original life of the patent…

A: Value of patent amortization from 1 Jan, 2015 to 1 Jan, 2020= 6,000,000*5/15 =2,000,000 Since the…

Q: In May 2019, Colt Company filed suit against Johnson Company seeking P1,900,000 damages for patent…

A: A contingent asset is a possible asset that arises from a past event and its existence will be…

Q: Maris Co. purchased a machine on January 1, 2020, for $2,500,000 for the express purpose of leasing…

A: Annual depreciation=$2,500,0005=$500,000

Q: On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor)…

A: A lease is a written agreement that indicating the conditions within which a lessor acknowledges to…

Q: In January of 2021, the Phillips Company purchased a patent at a cost of $100,000. The company…

A: Cost of patent = $100,000 Useful life = 10 years

Q: Oriole Corporation purchases a patent from Pharoah Company on January 1, 2020, for $73,920. The…

A: Given: Patent cost =$73,920 Life 10 yeas 1 Jan 2022 book value is $59,136 Amount spend on defending…

Q: On January 1, 2020, Lesley Benjamin signed an agreement, covering 5 years, to operate as a…

A: Refer annuity table for Ordinary annuity for 5 years at 11%  (3.6959)

Q: Sydney, Inc., a manufacturer of chocolate-coated mint candy acquired a patent on June 25, 2018, for…

A: Intangible assets shall be amortized over the useful life of intangible assets.  Amortization…

Q: A patent was acquired by Renfro Corporation on January 1, 2014, at a cost of $90,000. The useful…

A: (a) Amortisation expense for the year 2014 Acquisition cost of patent = $90,000 Useful life of the…