A company purchases a trademark for $480,000. The trademark has a legal life of 15 years, but management estimates its economic life to be 8 years. What would be the annual amortization expense, and what journal entry should be recorded?
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trademark has a legal life of 15 years, but management
estimates its economic life to be 8 years. What would be
the annual amortization expense, and what journal entry
should be recorded?"
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- For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a ten-year remaining legal life was purchased for $300,000. The patent will be usable for another eight years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $24,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all twenty years of its life.Calico Inc. purchased a patent on a new drug. The patent cost $21,000. The patent has a life of twenty years, but Calico only expects to be able to sell the drug for fifteen years. Calculate the amortization expense and record the journal for the first-year expense.At the beginning of the year, a company purchases a patent for $1504000. The remaining legal life of the patent is 10 years, but management estimates that the patent will generate additional revenue for the next 16 years because there are currently no known competitors. What amount of amortization on the patent will be recorded for the asset at the end of the first year, assuming that the straight-line method is used and that the asset was purchased at the beginning of the year? O $-0- $150400 $94000 $188000
- Robotix Company purchases a patent for $21,000 on January 1. The patent is good for 18 years, after which anyone can use the patent technology. However, Robotix plans to sell products using that patent technology for only 5 years. Prepare the intangible asset section of the year end balance sheet after amortization expense for the year is recorded.A company pays a patent for $ 98,000 with a useful life of 12 years.Calculate amortization. You must present the calculation made.On January 1, Year 1, Stiller Company paid $192,000 to obtain a patent. Stiller expected to use the patent for 5 years before it became technologically obsolete. The remaining legal life of the patent was 8 years. Based on this information, what is the amount of amortization expense during Year 3 and the book value of the patent as of December 31, Year 3, respectively? Multiple Choice O $24,000 and $72,000 $24,000 and $120.000 $38,400 and $76,800 $38,400 and $115,200
- On January 1, 2024, Weaver Corporation purchased a patent for $237,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2026, the company incurred legal fees of $57,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. Required: Determine the financial statement effects of the following: the purchase in 2024; amortization in 2024; amortization in 2025; legal fees in 2026; and amortization in 2026. Complete this question by entering your answers in the tabs below. Jan 2024 Dec 2024 Dec 2025 Jan 2026 Dec 2026 Determine the financial statement effects of the purchase in 2024. Note: Amounts to be deducted should be indicated by a minus sign. Patents Cash Balance Sheet Assets Liabilities Stockholders' Equity Common Retained Stock Earnings Revenues 237,000 (237,000) Income Statement Net…Calico Inc. purchased a patent on a new drug. The patent cost $26,000. The patent has a life of 25 years, but Calico only expects to be able to sell the drug for 20 years. A. Calculate the amortization expense. $ B. Record the journal for the first-year expense. If an amount box does not require an entry, leave it blank. Accounts Receivable Amortization Expense Cash Factoring Expense PatentA pharmaceutical company purchased a patent for a new drug October 1 for $1,000,000. The remaining legal life of the patent is 10 years but the firm only expects to benefit from the patent for 4 years. No residual value is expected. Assuming the straight-line method is used, what is the amortization expense, if any, for the current accounting period (year) ending on 12/31? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 耳e a ASUS f4 f5 f6 X f7 f8 f10 f11 & 4. 5 7 R T Y U 6 图 %24
- On January 1, 2024, Weaver Corporation purchased a patent for $264,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2026, the company incurred legal fees of $84,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. Required: 1. Record the purchase in 2024; amortization in 2024; amortization in 2025; legal fees in 2026; and amortization in 2026. 2. What is the balance in the Patent account at the end of 2026? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the balance in the Patent account at the end of 2026? Balance in the Patent accountLos Altos, Inc. obtained a patent for a new optical scanning device. The fees incurred to file for the patent and to defend the patent in court against several companies that challenged the patent amounted to $45,000. Los Altos, Inc. concluded that the expected economic life of the patent was 12 years. Calculate the amortization expense that should be recorded in the second year. $ 0On January 1, 2024, Weaver Corporation purchased a patent for $234,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2026, the company incurred legal fees of $54,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. Required: 1. Record the purchase in 2024; amortization in 2024; amortization in 2025; legal fees in 2026; and amortization in 2026. 2. What is the balance in the Patent account at the end of 2026? Complete this question by entering your answers in the tabs below. Required 1 Required 2 13 Record the purchase in 2024; amortization in 2024; amortization in 2025; legal fees in 2026; and amortization in 2026. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry…
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