Remington Corporation purchases a patent from Durler Company on January 1, 2020, for $84,000. The patent has a remaining legal of 16 years. Remington feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Remington's books is $67,200. In January, Remington spends $20,000 successfully defending a patent suit. Remington still feels the patent will be useful until the end of 2029. Prepare Remington's journal entries to record the amortization for 2020 and 2022.

Q: On January 1, 2021, Weaver Corporation purchased a patent for $237,000. The remaining legal life is…

A: Intangible Assets:  Intangible assets are the long-term assets having no physical existence.…

Q: Prepare the journal entry at the end of the second year to record the payment and interest. (Round…

A: Solution:- Preparation of journal entry at the end of the second year to record the payment and…

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: March 2025, Wyoming Company filed a suit against DC Company seeking P2,000,000 damages for patent…

A: Ans. 0

Q: March 2025, Wyoming Company filed a suit against DC Company seeking P2,000,000 damages for patent…

A: GAAP- Generally Accepted Accounting Principles. GAAP is a set of accounting standards, regulations,…

Q: In May 2020, West Company filed suit against brown Inc. seeking P850, 000 damages for patent…

A: Lets understand the meaning of contingent asset. Definition of contingent asset contain in the IAS…

Q: On December 31, 2021, Mr. Eusebio enters into a contract will Brandon Corp, to transfer a license…

A: On transfer of the license of a franchise a specific fee is paid, it is called franchise fees. They…

Q: Dow Chemical was sued for infringing Bayer Industries' patent No. 123X45 in March of 2019. Dow's…

A: Given: The lose and damages value are found to be $4,000,000  and $7,000,000.  The cash settlement…

Q: In 2020, ABC Machine Company spent P352,000 on research and development costs for an invention. This…

A: The expenses related to the patent will be the amortization expense and other expenses incurred…

Q: On October 1, 2021, Sputnik V Company leased from Gamaleya Company a set of furniture, which Sputnik…

A: Formula: Monthly rent = Total Rent / number of months

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 March 1, 2021, Happy Company leased equipment to Great Company for a four-year period ending…

A: Calculation of gross investment: Gross rentals + absolute amount of residual value   Gross…

Q: Cullumber Company from time to time embarks on a research program when a special project seems to…

A: Journal entry is defined as recording of the transactions into the books of accounts of the company…

Q: On January 1, 20x1, Entity A purchases a patent from Entity B for 300,000. Entity B, has helped the…

A: The patent is an intangible asset that is amortized over its useful life but not more than its legal…

Q: Blue Inc. has decided to purchase equipment from Central industries on January 2, 2022, to expand…

A: Given information Note issued for = $810,000 Number of years  = 5 years Interest rate  = 11%…

Q: a. How much is the amortization expense for the year 2021? b. How much is the franchise fee expense…

A: Purchase amount of franchise = 3,125,000 The estimated useful life of the franchise = 10 years…

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: A company buys an oil rig for P1,000,000 on January 1, 2020. The life of the rig is 10 years and the…

A: Introduction: When the oil rig is purchased, it should be accounted at the cost at which it was…

Q: Blue Inc. has decided to purchase equipment from Central industries on January 2, 2022, to expand…

A: Solution: Present value of note = $162,000 * PVA of $1 at 11% for 5 periods = $162,000 * 3.69590 =…

Q: Good mornig 5 mayo 8:44

A: Following is the journal entry to record the purchase of the patent:

Q: On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is…

A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization…

Q: Sheridan purchased the license for distribution of a popular consumer product on January 1, 2020,…

A: Definition: Amortization: Decreasing value of intangible Asset over a period is called Amortization

Q: b Company, a lessor of office machines, purchased a new machine for P 150,000 on January 1, 2020,…

A: Lease gives the right to use the assets by payment of periodic payment during the lease period and…

Q: On April 1,2021, Beauty Company purchased a franchise for P3,000,000. In addition, the franchise…

A: As per IAS 38, intangible assets shall be amortized on a systematic basis over its useful life.

Q: On Jan. 1, 2021, ABC Publishing House exchanged its copyright over a book for one over an artwork.…

A: Book value is the value at which the asset is originally purchased or the value after depreciation.…

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: Reuben Company retires a machine from active use on January 2, 2019, for the express purpose of…

A: Solution Net income  refer to the amount an individual and business makes after deducting  costs ,…

Q: Engelhart Company licenses customer relationship software to Kristin Incorporated for 3 years. In…

A: PLEASE GIVE A LIKE   your like matters  (a) If the performance obligations are interdependent:   the…

Q: On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is…

A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization…

Q: The Hankin Corporation purchased new production equipment on September 1. 2017 for $14,000 and…

A: Assets are the rights and resources being held by the business. It can be current assets, non…

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.Tartabull bought a franchise from Alexander Co. on January 1, 2019, for $900,000. The carrying…

A: a.) refer table for calculationsAnswer- $ 90,000 to be amortised on 31st dec 2020 for the year 2020.

Q: In May 2021, Cruiser Company filed suit against Stallman, Inc.  seeking P850,000 damages for patent…

A: Contingent assets are those probable assets whose existence would be confirmed through the non-…

Q: PEI Ltd. purchased a copyright on a new book series about the history of the Great Lakes in Ontario…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: On January 31, 2020, Manning Company acquired a new machine by paying $40,000 cash and agreeing to…

A: Present value method is used to evaluate the different level of investment projects. With the help…

Q: Leody Company purchased a machine on December 1, 2020 at an invoice price of P4,500,000 with terms…

A: Accumulated depreciation is the total amount of depreciation which is charged on the machine.…

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 November 1, 2019, a newly established manufacturing outfit paid cash to acquire a patent for…

A: The amortization expenses are the allocation of the cost of intangible assets over the period that…

Q: Reuben Company retires a machine from active use on January 2, 2019, for the express purpose of…

A: Step 2 in solution.

Q: At December 31,2020, a firm is evaluating a contingent liability as part of their annual financial…

A: Contingent liabilities are the amount of obligation which depends on the uncertain future event that…

Q: Good night PREGUNTA

A: Amortization: It is the process of allocating the value of an intangible asset over its definite…

Q: On January 2, 2019, Ivan got the franchise of PPP Inc. The franchise agreement provides a P500,000…

A: For Calculating the Earned Franchise Fees which are included with the details of the down payment…

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: ylor Swift Corporation purchases a patent from Salmon Company on January 1, 2020, for $54,000. The…

A: Patent is a right that is exclusively granted by the Government to an individual or firm to process…

Q: On January 1, 2022, Scarlet registered a patent for a total registration and legal cost of P800,000.…

A: To calculate the carrying value of the intangible asset, the amortization expense for the period is…

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 March 1, 2021, Happy Company leased equipment to Great Company for a four-year period ending…

A: Gross investment in the lease    = Lease payments + Unguaranteed residual

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.