yadrs 50 years b. immediately t or Chan EPO/PPO F d. not amortized 21. Plaza Company originated late in 2017 and began operations on January 2. 2018 Plaza is angaged in Change conducting market research studies on behalf of manufacturers Prior to the start of operations, the following costs were incurred: entde Attorney's fees in connection with organization of Plaza Improvements to leased offices prior to occupancy Meetings of incorporators, state filing fees, and other company expenses S 4.000 7,000 5.000 $18.000 ID No. rself (pleas What is the amount of expense recognized for 2018? $16,000 $9,000 a. b C. $7,000 d. $4,000 22. Frye Company incurred R&D costs in 2018 as follows: Equipment acquired for use in multiple R&D projects Depreciation on the equipment Materials used $1,000,000 APP 150,000 200,000 500,000 100,000 250,000 Wages and salaries of R&D personnel Outside consulting fees Appropriately allocated indirect costs SEf éctiv The total R&D costs reported in Frye's 2018 income statement should be: $650,000 $900,000 $1,200,000 d. $1,800,000 a. thon b. C. 23. Which of the following assets typically are amortized? Trademarks No Patents a. No Yes b. Yes Yes No с. No Yos

yadrs 50 years b. immediately t or Chan EPO/PPO F d. not amortized 21. Plaza Company originated late in 2017 and began operations on January 2. 2018 Plaza is angaged in Change conducting market research studies on behalf of manufacturers Prior to the start of operations, the following costs were incurred: entde Attorney's fees in connection with organization of Plaza Improvements to leased offices prior to occupancy Meetings of incorporators, state filing fees, and other company expenses S 4.000 7,000 5.000 $18.000 ID No. rself (pleas What is the amount of expense recognized for 2018? $16,000 $9,000 a. b C. $7,000 d. $4,000 22. Frye Company incurred R&D costs in 2018 as follows: Equipment acquired for use in multiple R&D projects Depreciation on the equipment Materials used $1,000,000 APP 150,000 200,000 500,000 100,000 250,000 Wages and salaries of R&D personnel Outside consulting fees Appropriately allocated indirect costs SEf éctiv The total R&D costs reported in Frye's 2018 income statement should be: $650,000 $900,000 $1,200,000 d. $1,800,000 a. thon b. C. 23. Which of the following assets typically are amortized? Trademarks No Patents a. No Yes b. Yes Yes No с. No Yos

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

Chapter12: Intangibles

Section: Chapter Questions

Problem 2MC

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Similar questions

Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense at December 31, 2020, if the double-declining-balance method were used? a. $187,200 b. $192,000 c. $195,200 d. $312, 000
Otter Tail, Inc., began operations in January 2015 and had the following reported net income or loss for each of its 5 years of operations: At December 31, 2019, Otter Tails capital stock was comprised of the following: Otter Tail has never paid a cash or stock dividend. There has been no change in the capital accounts since Otter Tail began operations. The appropriate state law permits dividends only from retained earnings. Required: Prepare a worksheet showing the maximum amount available for cash dividends on December 31, 2019, and how it would be distributable to the holders of the common shares and each of the preferred shares. Show supporting computations in good form.
On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of 200,000. The bonds mature in 10 years. Interest is paid semiannually on March 31 and September 30. The proceeds from the bond issuance were 205,294.53 to yield 8.6%. Ball Company has a December 31 fiscal year-end and does not use reversing entries. Required: 1. Prepare journal entries to record the issuance of the bonds and the interest payments for 2019 and 2020 using the effective interest method. 2. Prepare journal entries to record the issuance of the bonds and the interest payments for 2019 and 2020 using the straight-line method.
Hamilton Companys balance sheet on January 1, 2019, was as follows: Korbel Company is considering purchasing Hamilton (a privately held company) and discovers the following about Hamilton: a. No allowance for doubtful accounts has been established. A 10,000 allowance is considered appropriate. b. Marketable securities are valued at cost. The current market value is 60,000. c. The LIFO inventory method is used. The FIFO inventory of 140,000 would be used if the company is acquired. d. Land, included in property, plant, and equipment, which is recorded at its cost of 50,000, is worth 120,000. The remaining property, plant, and equipment is worth 10% more than its depreciated cost. e. The company has an unrecorded trademark that is worth 70,000. f. The companys bonds are currently trading for 130,000. g. The pension liability is understated by 40,000. Required: 1. Compute the amount of goodwill if Korbel agrees to pay 500,000 cash for Hamilton. 2. Next Level What are the reasons that the book value of Hamiltons net identifiable assets differ from their market value? 3. Prepare the journal entry to record the acquisition on the books of Korbel assuming Hamilton is liquidated. 4. If Korbel agrees to pay only 400,000 cash, how much goodwill exists? 5. If Korbel pays only 400,000 cash, prepare the journal entry to record the acquisition on its books, assuming Hamilton is liquidated.
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
On January 1, 2017, Tenants Company acquired as a long term investment for P5,600,000 a 40% interest in an investee when the fair value of the net assets was P14,000,000. The investee reported the following results of operation: 2017 (4,000,000) 2018 (5,600,000) 2019 (6,400,000) 2020 3,200,000 What amount should be reported by tenants as investment loss for the year 2019?
On June 30, 2021, Mill Corp. incurred a 100,000 net loss from disposal of a business segment. Also, on June 30, 2021, Mill paid 40,000 for property taxes assessed for the calendar year 2021. What amount of the foregoing items should be included in the determination of Mill’s net income or loss for the six-month interim period ended June 30, 2021? A. P120,000 B. P90,000 C. P140,000 D. P70,000
On January 1, 2017, Tenants Company acquired as a long term investment for P5,600,000 a 40% interest in an investee when the fair value of the net assets was P14,000,000. The investee reported the following results of operation: 2017 (4,000,000) 2018 (5,600,000) 2019 (6,400,000) 2020 3,200,000 What amount should be reported by tenants as investment income for the year 2020?
On Jan. 1, 2015, ABC Co. acquired as a long-term investment for P1.4M,a 40% interest in DEF Co. when the fair value off DEF’s net asset was P3.5M. DEF reported the following net losses:2015 1M 2016 1.4M 2017 1.6M 2018, 800,000On January 1, 2017, ABC made cash advances of P400,000 to Mate. On Dec. 31, 2018, it is not expected that ABC will provide further support for DEF. What amount should Sole report in 2018 as loss from investment?
On January 1, 2020, Allure Company sold an equipment with a carrying amount of P800,00, receiving a noninterest bearing note due in three years with a face amount of P1,000,000. There os no established market value for the equipment. The interest rate on similar obligations is 12%. The present value of 1 at 12% for three periods is .712. 1. What amount should be reported as gain or loss on the sale of equipment in 2020? a. 200,000 gain b. 200,000 loss c. 88,00 gain d. 88,00 loss 2. What amount should be reported as interest income for 2020? a. 288,000 b. 120,000 c. 96,000 d. 85,440 3. What is the carrying amount of note receivable on December 31, 2020? a. 559,600 b. 712,000 c. 797,440 d. 800,000 4. What amount should be reported as interest income for 2021? a. 95,693 b. 96,000 c. 75,000 d. 60,000
On january 1, 2020, allure company sold an equipment with a carrying amout of 800,000, receiving a noninterest bearing note due in 3 years with a face amount of 1,000,000. There is no established market value for an equipment. The interest rate on similar obligation is 12%. The present value of 1 at 12% for three periods is 0.712. What amount should be reported as gain or loss on the sale of equipment in 2020?
The following trial balance relates to Golden Ltd at 30th September 2018GHS'000GHS'000Sales (a)760,000Material purchases (b) 128,000Production labour (b) 248,000Factory overheads (b) 160,000Distribution costs 28,400Administrative expenses (c) 92,800Finance costs 700Investment income1,600Leased property - at cost (b) 100,000Plant and equipment - at cost (b) 89,000Accumulated amortisation/depreciation at 1/10/2017- leased property20,000- plant and equipment29,000Equity investments (e) 36,000Inventory at 1/10/17 93,400Trade receivables 67,100Trade payables55,600Bank4,600Stated capital (GHS0.2)100,000Income surplus (1/10/2017)67,200Deferred tax (f)5,4001,043,4001,043,400The following notes are relevant:(a) Sales include goods sold and dispatched in September 2018 on a 30-day right of return basis. Their sellingprice was GHS4.8m and they were sold at a gross profit margin of 25%. In the past, Golden Ltd’scustomers have always met their obligations under this type of agreement.(b)…