Sunland Co. bought a patent from Carla Vista Corp. on January 1, 2021, for $918000. An independent consultant retained by Sunlandestimated that the remaining useful life at January 1, 2021 is 15 years. Its unamortized cost on Carla Vista’s accounting records was $459000; the patent had been amortized for 5 years by Carla Vista. How much should be amortized for the year ended December 31, 2021 by Sunland Co.?
Sunland Co. bought a patent from Carla Vista Corp. on January 1, 2021, for $918000. An independent consultant retained by Sunlandestimated that the remaining useful life at January 1, 2021 is 15 years. Its unamortized cost on Carla Vista’s accounting records was $459000; the patent had been amortized for 5 years by Carla Vista. How much should be amortized for the year ended December 31, 2021 by Sunland Co.?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 8MC: On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was...
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Sunland Co. bought a patent from Carla Vista Corp. on January 1, 2021, for $918000. An independent consultant retained by Sunlandestimated that the remaining useful life at January 1, 2021 is 15 years. Its unamortized cost on Carla Vista’s accounting records was $459000; the patent had been amortized for 5 years by Carla Vista. How much should be amortized for the year ended December 31, 2021 by Sunland Co.?
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