On January 4, 2016, Franc Company purchased for $30,000 a patent that had been filed 8 years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2017, the company paid its lawyers $11,000 for successfully defending the patent in a lawsuit   how to calculate amotization

Q: Zurich Manufacturing Company acquired three patents in August 2019. The patents have different…

A: Amortization is the reduction in the valuation of any Intangible Asset of the company. This…

Q: Nieland Industries had one patent recorded on its books as of January 1, 2017. This patent had a…

A: Workings: Given values; Book value of patent as of January 01, 2017 = $ 288000 Useful life = 8…

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: On January 3, 2015, the Pomelo Company spent P480,000 to apply for and obtain a patent on a newly…

A: A patent is legal right to use the use the intangible asset. The cost of the patent is amortized…

Q: During 2017 Holy land Corporation spent $150,000 in research costs. As a result a new product was…

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

Q: What is the recorded cost of the patent? Total Capitalized cost=

A: As per IAS 16 any cost directly associated with the product to bring to its intended use and desired…

Q: On March 17, Advanced Technologies purchased a patent related to laser surgery techniques. The…

A: Introduction Advanced Technologies: A technology that is either technically developed but has just a…

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: On January 1, 2011, the account balances of Miami Company showed patent cost of  P1,920,000 and…

A: Carrying Amount of Intangible Asset as on January 1 2011 =Patent cost - Accumulated amortization…

Q: Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of…

A: Balance of patent as on 31 December 2017 = P 120,000 Useful life of an asset = 8 years Amount of…

Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…

A: Annual amortization = Cost of the patent / Life of the patent = $9,000,000 / 9 years = $1,000,000…

Q: Smart Company incurred the following costs in 2021, in relation to developing a machine that will be…

A: R & D expenses are related to amount spent on reasearch and development to introduce new…

Q: Among the account balance of Jeffrey Corporation at December 31, 2009 are the following: Patent…

A: A patent is the granting of a property right to the inventor by a sovereign authority. This grant…

Q: Taylor Swift Corporation purchases a patent from Salmon Company on January 1, 2017, for $54,000. The…

A: Journal entry is a record of financial transaction in the books of accounts maintained by an…

Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…

A: The patent represents the intangible asset for the corporation entitles for amortization which…

Q: n early January 2014, Paltel Company applied for a patent, incurring legal costs of $60,000. In…

A: Amortization: A process which involves writing down or reducing the value of intangible assets or…

Q: Ice Giant Company purchased a patent on January 1, 2015 for P6,000,000. The original useful life was…

A: Depreciation , amortization , depletion all means the fall in value of assets due to one reason or…

Q: Red Co. has a patent on a communication process. The company has amortized the patent on a…

A:

Q: On September 1, 2015, Johnas, Inc. acquired a patent for $600,000. The patent has 16 years remaining…

A: Patents are intangible assets acquired as a right to use any formula, method or process. These are…

Q: Smart Company incurred the following costs in 2021, in relation to developing a machine that will be…

A: Patents are intangible assets used by the company, It is similar to goodwill and trademarks, It is…

Q: apple Fruit Trading spent P1,440,000 in acquiring a patent on January 3, 2012. Due to the…

A: Patent is a form of intangible asset for the business which needs to be amortised over the useful…

Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, 2021, The Donut Stop purchased a patent for $75,000. At that time, the remaining legal…

A: 1. Date General Journal Debit Credit Jan 01, 2021 Patent $75,000                Cash…

Q: A patent was acquired from another company on January 1, 2019, for $25,000.The useful life is 10…

A: Amortisation is reduction in the value of intangible assets like patents…

Q: On January 1, 2008, Elyssa Company purchased a patent for a new consumer for a new consumer product…

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

Q: On January 1, 2016, Gordon Company purchased a patent for $420,000 from an inventor who had…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Danika Manufacturing purchased a patent from Clayton Industries on January 1, 2015, by paying…

A: Patent gives the right to use the formula to manufacture the products or to make the software Patent…

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

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: REQUIRED: (Round your answer to the whole number)  (a) Prepare the relevant journal entries…

A: The question is related to Impairment of Assets. ie. Impairment of Patent. The details are given…

Q: Stars Corporation incurred a P198,900 of research and development costs to develop a product for…

A: January 2, 2017: Legal cost and other costs of patent = P44,200 Useful economic life = 20 years On…

Q: During 2016, Riverbed Corporation spent $162,720 in research and development costs. As a result, a…

A: The patent has to be amortized over the useful life and not legal life.

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

A:

Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…

A:

Q: Dragon Fruit Trading spent P1,440,000 in acquiring a patent on January 3, 2012. Due to the…

A: Amortization is the diminution in the worth of intangible asset due to its obsolescence or limited…

Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…

A: Prepare the year-end journal entry for patent amortization in 2018.

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: During 2016, Martinez Corporation spent $155,520 In research and development costs. As a result, a…

A: Research and developments costs are to be capitalized as they are capital expenditure. Patents are…

Q: What is the total amount that should be debited to Patents through July 31, 2022?

A: Given information is: Oriole Company incurred $930000 of research and development costs in its…

Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…

A: Amortization records the usage of an intangible fixed asset over a period of time and allocates its…

Q: Aramex Company purchased a patent from Datco Company for $220,000 on July 1, 2012. Expenditures of…

A: Carrying value is an accounting indicator of value that bases the value of an asset or entity on the…

Q: During 2016, Martinez Corporation spent $155,520 in research and development costs. As a result, a…

A:

Q: During 2016, Grouper Corporation spent $152,640 in research and development costs. As a result, a…

A: The question is based on the concept of Business Transaction Analysis.

Q: On January 3, 2015, the Pomelo Company spent P480,000 to apply for and obtain a patent on a newly…

A: The amortization is charged to intangible assets as depreciation is charged to tangible assets.

Q: On January 4, 2015, a research project undertaken by Nasja Ltd. was completed and a patent was…

A: According to IFRS 18a: "An intangible asset is an identifiable non-monetary resource without…

Q: During 2016, Winston Corporation spent $170,000 in research and development costs. As a result, a…

A: Step 1: a. Journal entry: In the first entry, research and development account is debited and the…

Q: .. Danika Manufacturing purchased a patent from Clayton Industries on January 1, 2015, by paying…

A: Carrying Amount = Cost - Accumulated Depreciation Intangible Assets are initially measured at Cost…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.