A patent was purchased on January 2, 2018, for $91,000 when the remaining legal life was 16 years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition. On January 1, 2020, Denzel Company purchased a second patent for $112,000 cash. At January 1, 2020, 6 years of the patent's legal life of 20 years had already expired. On June 30, 2020, Denzel Company paid a firm $11,200 for a new trademark. Denzel considers the life of the trademark to be indefinite. . ● ● On November 1, 2020, Denzel Company acquired all noncash assets and assumed all liabilities of Lee Company at a cash purchase price of $168,000. Denzel determined that the fair value of the identifiable net assets acquired in the transaction is $163,800. . Assume no impairment losses were recognized in prior periods. When answering the following questions, do not round until your final answer. Round your final answer to the nearest whole number. What is the carrying value of intangible assets on December 31, 2020? None of the other answers is correct. $170,354. $185,754. $218,400.

A patent was purchased on January 2, 2018, for $91,000 when the remaining legal life was 16 years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only eight years from the date of its acquisition. On January 1, 2020, Denzel Company purchased a second patent for $112,000 cash. At January 1, 2020, 6 years of the patent's legal life of 20 years had already expired. On June 30, 2020, Denzel Company paid a firm $11,200 for a new trademark. Denzel considers the life of the trademark to be indefinite. . ● ● On November 1, 2020, Denzel Company acquired all noncash assets and assumed all liabilities of Lee Company at a cash purchase price of $168,000. Denzel determined that the fair value of the identifiable net assets acquired in the transaction is $163,800. . Assume no impairment losses were recognized in prior periods. When answering the following questions, do not round until your final answer. Round your final answer to the nearest whole number. What is the carrying value of intangible assets on December 31, 2020? None of the other answers is correct. $170,354. $185,754. $218,400.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Rev
A patent was purchased on January 2, 2018, for $91,000 when the remaining legal life was 16
years. On January 2, 2020, Denzel determined that the remaining useful life of the patent was only
eight years from the date of its acquisition.
On January 1, 2020, Denzel Company purchased a second patent for $112,000 cash. At
January 1, 2020, 6 years of the patent's legal life of 20 years had already expired.
On June 30, 2020, Denzel Company paid a firm $11,200 for a new trademark. Denzel considers
the life of the trademark to be indefinite.
●
On November 1, 2020, Denzel Company acquired all noncash assets and assumed all liabilities
of Lee Company at a cash purchase price of $168,000. Denzel determined that the fair value of the
identifiable net assets acquired in the transaction is $163,800.
Assume no impairment losses were recognized in prior periods. When answering the following
questions, do not round until your final answer. Round your final answer to the nearest whole number.
What is the carrying value of intangible assets on December 31, 2020?
None of the other answers is correct.
$170,354.
$185,754.
$218,400.
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