Sandy company acquired a copyright to a best seller novel for 855,000 on January 1, 2017. The copyright has a remaining legal life of 20 years. Sales of the novel are estimated as follows: 2017 150,000 copies 2018 90,000 copies 2019 30,000 copies 2020 15,000 copies What is the entry on 2018?
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11. Sandy company acquired a copyright to a best seller novel for 855,000 on January 1, 2017. The copyright has a remaining legal life of 20 years.
Sales of the novel are estimated as follows:
2017 150,000 copies
2018 90,000 copies
2019 30,000 copies
2020 15,000 copies
What is the entry on 2018?
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- Sanity Company acquired a copyright to a best seller novel for P285, 000 on January 1, 2012. The copyright has a remaining legal life of 20 years. Sales of the novel are estimated as follows: 2012 50, 000 copies 2013 30, 000 copies 201410, 000 copies 2015 5, 000 copies Prepared all indicated entries for 2012 and 2013.what is/are the rules in answering the problem?Crane Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Crane purchased two copyrights during 2023. The first copyright was purchased on February 1 for $21,000 and was expected to have a useful life until the end of December, 2025. The second copyright was purchased on July 1 for $145,800 and was expected to have an indefinite useful life. Crane's fiscal year-end was December 31. On July 1. 2024. Crane paid $5,400 in legal fees to successfully defend the first copyright in court. On September 1, 2024, Crane determined that the second copyright would no longer have an indefinite useful life, and in fact would have a useful life of another 9 years beginning September 1, 2024. On April 1, 2025, Crane sold the second copyright for $155,350.00 Prepare the journal entries on the books of Crane to record the above transactions. (Hint: don't forget the year-end amortization entries).12. On January 1, 2021, ABC Company purchased P600,000, a trademark with an estimated useful life of 16 years. In January 2025, ABC paid P90,000 for legal fees in a successful defense of the trademark. ABC recorded amortization expense for the year ended December 31, 2025, of 45,000. The amount of expense for the year 2025 is overstated or understated by how much? (Sample answer: understated 10,000)
- On January 1, 2017, Reno Company purchased a copyright for $1,000,000, having an estimated useful life of 16 years. In January 2021, Reno paid $150,000 for legal fees in a successful defense of the copyright. What should be the amount of copyright amortization expense for the year ended December 31, 2021?41 Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of P120,000, and accumulated amortization of P 60,000. The Patent is being amortized for its useful life of eight years. On July 1, 2018, Mayumi spent P 30,000 to defend the patent against an infringement suit. On January 1, 2019, with the rapid change in technology, the company determined that the patent will be of no value to the company and that a loss on patent obsolescence has to be recognized.How much is the loss on patent obsolescence?23. Sawi Ak Co. acquires copyright from authors, paying advance royalties in some cases and in others, paying royalties within 30 days from year end. Sawi Ak Co. reported royalty expense of P375,000 for the year ended December 31, 2020. The following data are included in the corporation’s balance sheet, 2019 and 2020, respectively: Prepaid royalties- P60,000; P50,000 Royalties payable- P75,000; P90,000 Under cash basis, what amount of royalty expense should be reported in 2020 profit or loss? Choices: P350,000 P380,000 P400,000 P375,000
- Taylor Swift Corporation purchases a patent from Salmon Company on January 1, 2017, for $54,000. The patent has a remaining legal life of 16 years. Taylor Swift feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Taylor Swift’s books is $43,200. In January, Taylor Swift spends $24,000 successfully defending a patent suit. Taylor Swift still feels the patent will be useful until the end of 2026. Prepare the journal entries to record the $24,000 expenditure and 2019 amortization9. In 2020, ABC Machine Company spent P352,000 on research and development costs for an invention. This invention was patented on January 2, 2021, paying P24,000 for licensing and legal fees to secure it. The patent has a legal life of 17 years and an estimated useful life of 8 years. In January 2025, ABC paid P32,000 for legal fees in a successful defense of the patent. Related to the patent, the expense for the year 2025 is?A Enterprises is a large Canadian company traded on the Toronto Stock Exchange. A purchased two copyrights during 2023. The first copyright was purchased on February 1 for $17500 and was expected to have a useful life until the end of December, 2025. The second copyright was purchased on July 1 for $88200 and was expected to have an indefinite useful life. A's fiscal year-end was December 31. On July 1, 2024, A paid $7560 in legal fees to successfully defend the first copyright in court. On September 1, 2024, A determined that the second copyright would no longer have an indefinite useful life, and in fact would have a useful life of another 7 years, beginning September 1, 2024. On April 1, 2025, A sold the second copyright for $98950. Prepare the journal entries on the books of A to record the above transactions. (Hint: don’t forget the year-end amortization entries).
- On January 3, 2012, the July Company spent P196,000 to apply for and obtain a patent on a newly developed product. The patent had an estimated useful life of 10 years. At the beginning of 2014, the company spent P28,000 in successfully prosecuting an attempted infringement of the patent.. At the beginning of 2017, the company purchased for P60,000 a patent that was expected to prolong the life of its original patent by 5 years. On July 1, 2020, a competitor obtained rights to a patent that made the company's patent obsolete. REQUIRED: Prepare journal entries to record the transactions relative to the patents from January 3, 2012 to July 1, 2020, inclusive.Gansac Publishing Company signed a contract with an author to publish her book. The signing took place on January 1, 2016, and a payment of $35,000 was made to obtain a copyright. Gansac expects to sell 200,000 books evenly between 2016 and 2020 at a price of $10 per book. Prepare journal entries to record the events related to the copyright and sales of the book during 2016 and 2017, assuming that sales were as projected.Sinise Industries acquired two copyrights during 2017. 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, 2017, thedate it was published. The second copyright (a history research textbook) was purchased from University Press on December 1, 2017, 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, 2017?