ze full year’s amortization in the year of acquisition and none in the year of derecognition. How much is the gain(loss) on disposal reco

Several years ago Walker Security purchased for $120,000 a well-known trademark for padlocks and other secu-rity products. After using the trademark for three years, Walker Security discontinued it altogether when the com-pany withdrew from the lock business and concentrated on the manufacture of aircraft parts. Amortization of the trademark at the rate of $3,000 a year is being contin-ued on the basis of a 20-year life, which the owner says is consistent with accounting standards. Do you agree?Explain.

Swifty Company incurred $551000 of research and development cost in its laboratory to develop a patent granted on January 1, 2027. On July 31, 2027, Swifty paid $83600 for legal fees in a successful defense of the patent. The total amount debited to Patents through July 31, 2027, is

Corning Industries owns a patent for which it paid $77,000. At the end of the current year, accumulated amortization on the patent totaled $14,000. Due to adverse economic conditions, Corning’s management determined that it should assess whether an impairment loss should be recognized for the patent. The estimated undiscounted future cash flows to be provided by the patent total $45,000, and the patent's fair value is $30,000. (a) What is the amount of the impairment loss, if any, on the patent at the end of the current year? (b) What is the book value of the patent after any impairment loss is recorded?

Reeves Company filed suit against Higgins, Incorporated, seeking damages for copyright violations. Higgins' legal counsel believes it is probable that Higgins will settle the lawsuit for an estimated amount in the range of $190,000 to $290,000, with all amounts in the range considered equally likely. How should Higgins report this litigation? Multiple Choice As a liability for $290,000 with disclosure of the range In a disclosure only; no liability is reported As a liability for $240,000 with disclosure of the range As a liability for $190,000 with disclosure of the range