Alonzo co. Acquires 3 patents solution this accounting questions Alonzo Co. acquires 3 patents from Shaq Corp. for a total of $360,000.The patents were carried on Shaq's books as follows: PatentAA: $5,000; Patent BB: $2,000; and Patent CC: $3,000. When Alonzoacquired the patents their fair market values were: Patent AA: $20,000;Patent BB: $240,000; and Patent CC: $60,000. At what amount shouldAlonzo record Patent BB?a. $120,000.b. $240,000.c. $2,000.d. $270,000.

Step 1: Define Intangible AssetsThere are some assets that a company owns that are intangible which…

Answered: Alonzo Co. acquires 3 patents from Shaq…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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Pit Coporation owns 75% of Stop Company's outstanding common stock. On 01/01/21, Pit sold sold a used piece of equipment to Stop in exchange for $236,000 cash. Pit's original cost of the equipment was $728,000 and accumulated depreciaiton of 01/01/21 was $447,000. The remaining useful life of the equipment is 10 years, and Stop will use that same usefull life. Both companies use the straight line method of depreciation. The Year-End Consolidated Financial Statements would include: Consolidated Loss on Sale in the amount of: $______________ Consolidated Depreciation Expense in the amount of $____________ Consolidated Equipment in the amount of $_______________ Consolidated Accumulated Depreciation in the amount of $__________
Pit Coporation owns 75% of Stop Company's outstanding common stock. On 01/01/21, Pit sold sold a used piece of equipment to Stop in exchange for $236,000 cash. Pit's original cost of the equipment was $728,000 and accumulated depreciaiton of 01/01/21 was $447,000. The remaining useful life of the equipment is 10 years, and Stop will use that same usefull life. Both companies use the straight line method of depreciation. Pit's Journal Entries would include:

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