Remaining Remaining Patent Cost economic life legal life A 2,000,000 10 8 B 3,000,000 5 10 6,000,000 indefinite 15 Patent C is believed to be uniquely useful as long as the entity retains the right to use it. In June 2021, the entity successfully defended its right to Patent B. Legal fees of P800,000 were incurred in this action. The entity's policy is to amortize intangible assets by the straight-line method to the nearest half year. The entity reports on a calendar-year basis. The amount of amortization that should be recognized for 2021 is

Remaining Remaining Patent Cost economic life legal life A 2,000,000 10 8 B 3,000,000 5 10 6,000,000 indefinite 15 Patent C is believed to be uniquely useful as long as the entity retains the right to use it. In June 2021, the entity successfully defended its right to Patent B. Legal fees of P800,000 were incurred in this action. The entity's policy is to amortize intangible assets by the straight-line method to the nearest half year. The entity reports on a calendar-year basis. The amount of amortization that should be recognized for 2021 is

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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9. During 2021, Rockon Company, Inc. incurred $240,000 in legal fees in defending a patent against an infringement with a carrying value of $2,500,000. Rockon’s lawyers were successful with the defense of the patent. The legal fees should be a. expensed in 2021 and classified as ordinary expenseb. classified as an extraordinary item on the income statement for 2021c. capitalized and amortized over the remaining legal life of the patentd. capitalized and amortized over the remaining economic life or legal life of the patent,whichever is shorter
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Print Item Exercise 8-24 (Algorithmic) (LO. 3) McKenzie placed in service qualifying equipment (7-year MACRS class) for his business that cost $404,900 in 2023. The taxable income of the business for the year is $70,700 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. Calculate McKenzie's § 179 expense deduction for 2023 and any carryover to 2024. § 179 expense deduction for 2023: $ § 179 carryover to 2024: $ b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment instead of using § 179 expensing? Hint: See Concept Summary 8.3. Additional first-year depreciation for 2023: $ MACRS cost recovery for 2023: $ Total cost recovery for 2023: $
Carla Vista Company purchases a patent for $147,200 cash on January 2, 2021. Its legal life is 20 years and its estimated useful life is 8 years. Record the purchase of the patent on January 2, 2021.
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Required information [The following information applies to the questions displayed below.] Woolard Supplies (a sole proprietorship) has taxable income in 2023 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Asset Office furniture (used) Placed In Service March 20 Deductible $179 expense Total depreciation deduction $179 carryforward b. If Woolard elects the maximum amount of $179 for the year, what is the amount of deductible §179 expense for the year? What is the total depreciation that Woolard may deduct in 2023? What is Woolard's §179 carryforward amount to next year, if any? Basis $ 1,200,000 $ 214,335
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