What is the total amount that should be debited to Patents through July 31, 2022?
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: The patent was acquired in January 1, 2019 and has a useful life of 10 years. The franchise was…
A: Legal cost to successfully defend the patent against infringement by another company is amortized…
Q: During 2017, Lyle company incurred P400,000 of research and development costs in its laboratory to…
A: Above mentioned patent meets the recognition criteria of intangible assets , it is a self generated…
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: 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 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: Kingbird had one patent recorded on its books as of January 1, 2017. This patent had a book value of…
A: The question is based on the concept of Financial Accounting.
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 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: ransactions during 2020 of the newly organized Atomic Corporation included the following: •…
A: Intangible assets are assets that doesn’t have physical form, they cannot be seen or touched but…
Q: During the year end audit of Cressman Corporation's financial statement for 2019, you discover the…
A: The journal entries are the first entries which are recorded in the books of accounts on Journal…
Q: On January 1, 2018, EM purchased a patent for a new consumer product for ₱4,800,000. At the time of…
A: The Patent useful life was 10 years but after purchase useful life changed to 8 years. Therefore…
Q: Banana Co. incurred P 350,000 of research and development costs to develop a product for which a…
A: Patent: It is the right that is granted to an inventor that excludes others for making and selling…
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: The Garnet Trading spent P1,440,000 in acquiring a patent on January 3, 2011. Due to the competitive…
A: Intangible Assets: Intangible assets are the resources of company having economic life of greater…
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: 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: Rooney Company incurred $280,000 of research and development cost in its laboratory to develop a…
A: A patent is the granting of a proprietary interest to an inventor by a sovereign authority. In…
Q: Crane Company incurred $840000 of research and development costs in its laboratory to develop a new…
A: Patents: A patent is an intangible asset, as it does not have any physical existence. The patent…
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: Nieland Industries had one patent recorded on its books as of January 1, 2020. This patent had a…
A:
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 3, 2012, the July Company spent P196,000 to apply for and obtain a patent on a newly…
A: A patent is a legal right to an invention that is given to a inventor company or entity for securing…
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: e use of
A:
Q: What is the cost of patent?
A: The patent can be defined as the grant of exclusive right for research or invention of a product,…
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: On January 1, 20x1, C Co. incurred P400,000 in registering a patent. I Inc., a third-party,…
A: We know that the formula to calculate the Amortization expense of intangible asset is Amortization…
Q: On January 2, 2016, David Corporation purchased a patent for $500,000. The remaining legal life is…
A:
Q: Crystal Company summarized the following transactions pertaining to its patent. 2012 Spent P250,…
A: Introduction A patent is an exclusive right that is given to that new product or new invention that…
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 3, 2018, Sweet company bought a patent for P540,000. The estimated useful life of the…
A: Amortization of the Patent: Amortization of the Patent is the tactic in which the cost of the patent…
Q: On Jan 1, 20X1, ABC Corp purchased a patent for P90,000. At the time of purchase the patent was…
A: Expense is the charge against revenue. Depreciation and amortization is recorded as expense in the…
Q: How much is the loss from the patent obsolescence?
A: A patent is legal right to use the use the intangible asset. The cost of the patent is amortized…
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: On January 1, 2022, Proton, Inc. purchased a patent giving it exclusive rights to manufacture a new…
A:
Q: Raya corporation spent $150,000 developing a new process before achieving economic viability,…
A: The legal fees is to be capitalized but market expenses are not capitalized.
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: 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: Raya corporation spent $150,000 developing a new process before achieving economic viability,…
A: A patent is a type of intangible asset.
Q: Klaus, Inc. has the ff. information regarding their intangible assets. Klaus spent P2,600,000 of…
A: Introduction Patent : - It…
Q: During 2016, Martinez Corporation spent $155,520 in research and development costs. As a result, a…
A:
Q: XYZ Corporation incurred the following costs in 2020: • XYZ Corporation purchased a patent from ABC…
A: Intangible assets include: Goodwill Patent Copyright Trademark
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…
Oriole Company incurred $930000 of research and development costs in its laboratory to develop a new product. It spent $174000 in legal fees for a patent granted on January 2, 2022. On July 31, 2022, Oriole paid $82000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2022?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Petes Petroleum, Inc., an SEC registrant with a calendar year-end, is in the business of constructing and operating offs] lore oil platforms. Petes Petroleum is required legally to dismantle and remove the platforms at the end of their useful lives, which is estimated to be 10 years. On January 1, 2019, Pete constructed and began operating an offshore oil platform off the coast of Brazil. The total capitalized cost to construct the platform was 3,700,000. In addition, while the future cost of dismantling the oil platform is difficult to estimate, Pete believes there is a 40% chance that the future cost will be 1,425,000, a 40% chance it will be 1,650,000, and a 20% chance that it will cost 2,125,000. The appropriate discount rate is 12%, and Pete uses the straight-line method of depreciation. Required: 1. Prepare the journal entries that Pete should record in 2019 related to the oil platform. 2. Prepare an amortization schedule for the asset retirement obligation. 3. Next Level Prepare a table showing the effect of accounting for the asset retirement obligation on assets, liabilities, shareholders equity, and net income relative to accounting for the associated costs at the end of the assets service life when the expenditure is made.How does a company record a patent worth 100,000 if: (a) it has just purchased it for 90,000? (b) the company has internally developed it at a cost of 50,000 and paid 1,000 in legal and filing fees?At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been capitalized as a cost of the factory building in 2015 when it should have been treated as a cost of production equipment installation costs. As a result of the misclassification, the depreciation through 2018 was understated by 110,000, and depreciation for 2019 was understated by 90,000. What would be the consequences of correcting for the misclassification of the property cost? a. The taxpayer uses the FIFO inventory method, and 25% of goods produced during the period were included in the ending inventory. b. The taxpayer uses the LIFO inventory method, and no new LIFO layer was added during 2019.
- Crane Company incurred $840000 of research and development costs in its laboratory to develop a new product. It spent $141000 in legal fees for a patent granted on January 2, 2022. On July 31, 2022, Crane paid $75000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2022? $216000. $1056000. $840000. $0.Baguio Corp. incurred P350,000 of research and development coststo develop a product for whicha patent was granted on January 2,2021. Legal fees and other costs associated with registration of thepatent totaled P100,000. On March 31, 2026, Baguio paid P150,000for legal fees in a successful defense of the patent. What total amountis capitalized for the patent through March 31, 2026?Running Running Corporation incurred P298,350 of research and development cost to develop a product for which a patent was granted on January 2, 2016 and legal fees and other costs associated with registration of the patent totaled P195,000. On January 1, 2022, Running Running paid P90,000 legal fees for the litigation put up against the patent. The patent has a useful life of 12 years. Assume that Corporation failed in their attempt to defend the patent in their litigation proceedings, what total amount of expense should Running Running Corporation report in its 2022 profit or loss related to the patent?
- Sheridan Corp. incurred $890000 of research and development costs to develop a product for which a patent was granted on January 2, 2018. Legal fees and other costs associated with registration of the patent totaled $165000. On March 31, 2021, Sheridan paid $375000 for legal fees in a successful defense of the patent. The total amount capitalized for the patent through March 31, 2021 should beOn 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.Mark Inc. incurred P816,000 of research and development costs in its laboratory to develop a patent which was granted on January 2, 2022. Additional costs of P152,000 were incurred in 'the registration of the patent. The estimated economic life of the patent a eight years.What amount should Mark charge to patent amortization expense for the year ended December 31, 2022? The answer must be 19,000
- Globe Company incurred the following costs in 2021, in relation to developing a machine that will be used in manufacturing a product.Professional fees paid to consultants to conduct market study-----P 250,000Fees paid to engineers and experts for initial research-- 150,000Cost of equipment used for research. The equipment will be used for other research projects. The useful life of the equipment is 5 years----P300,000Legal fees to obtain patent---P100,000Licensing fees paid to the patent office --P 25,000Legal costs paid to defend patent against infringement suit --P 47,000What is the cost of patent?Vincenzo Company spent P200,000 on research and development cost for an invention during 2021. On January 1, 2022, the invention was patented at a total cost of P450,000 with and estimated legal life of the patent was 20 years and the estimated useful life was 10 years. In January 2022, Vincenzo paid P250,000 for legal fees in a successful defense of the patent. What should be the amortization expense for 2022?During 2017, Lyle company incurred P400,000 of research and development costs in its laboratory to develop a product for which a patent was granted on July 1, 2017. Legal fees and other costs associated with the patent totaled P82,000. The estimated economic life of patent is 10 years. What amount should Lyle capitalize for the patent on July 1, 2017?________________________ and what is/are the rules in answering the problem?
