Show how the intangible assets section of the statement of financial position would be presented four years after acquisition ofthese assets, assuming that there has been no evidence that their values have been impaired. Assume that a full year ofamortization was taken in the year of acquisition.Intangible assets, at cost less accumulated amortizationCopyrightsPatentsCustomer ListsLicencesTotal intangible assets$$ Sandhill Ltd. purchased several intangible assets, as follows:AssetLicencesCustomer lists(a)The following information is also available:AssetLicencesPurchase CostCustomerlistsPatentsCopyrights$80,000In addition to the costs listed above, there were legal fees of $15,100 associated with the licence acquisitions. The licences arevalid in perpetuity, and sales of the products produced under the licences have been strong and are expected to continue atthe same level for many decades.The customer lists are expected to be useful for the next six years.The patent has a legal life of 20 years, but technological changes are expected to render it worthless after about 8 years.The copyright is good for another 40 years, but nearly all the related sales are expected to occur during the next 10 years.$60,300Calculate the annual amortization expense, if any, that should be recorded for each of these intangible assets, assuming thestraight-line method is appropriate. (Do not leave any answer field blank. Enter O for amounts.)$$Asset$PatentAnnual amortization expenseCopyrightPurchase Cost$151,000243,000

Amortization is usually done in a systematic way, such as straight-line amortization, in which the…

Answered: amortization was taken in the year of…

amortization was taken in the year of acquisition. Intangible assets, at cost less accumulated amortization Copyrights Patents Customer Lists $

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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DLW Corporation acquired and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment 2/17 $ 10,000 Furniture 5/12 $ 17,000 Commercial building 11/1 $ 270,000 Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) b. What is DLW's year 3 cost recovery for each asset if DLW sells these assets on 1/23 of year 3?
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mpaired Goodwill and Amortization of Patent On April 1, a patent with an estimated useful economic life of 12 years was acquired for $86,400. In addition, on December 31, it was estimated that goodwill of $40,500 was impaired. a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. April 1 Patents fill in the blank af587df38070ffe_2 fill in the blank af587df38070ffe_3 Cash fill in the blank af587df38070ffe_5 fill in the blank af587df38070ffe_6 Feedback Recall that goodwill is not amortized because its useful life is indefinite. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31 Amortization Expense-Patents fill in the blank a52e4402306cfed_2 fill in the blank a52e4402306cfed_3 Patents
Subject: acounting
12 In a taxable asset acquisition, amounts allocated to Class VI and Class VII assets will likely be amortized by the buyer over how many years: a. 5 years under IRC 167 b. 20 years under IRC 168 c. 15 years under IRC 197 d. 39.5 years under IRC 212
Impaired Goodwill and Amortization of Patent On April 1, a patent with an estimated useful economic life of 12 years was acquired for $86,400. In addition, on December 31, it was estimated that goodwill of $40,500 was impaired. a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. April 1 Patents fill in the blank af587df38070ffe_2 fill in the blank af587df38070ffe_3 Cash fill in the blank af587df38070ffe_5 fill in the blank af587df38070ffe_6 Feedback Recall that goodwill is not amortized because its useful life is indefinite. b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31 Amortization Expense-Patents fill in the blank a52e4402306cfed_2 fill in the blank a52e4402306cfed_3 Patents fill in the blank a52e4402306cfed_5 fill in the blank…
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For financial reporting purposes, GAAP requires organization costs to be capitalized and treated as an intangible asset with an indefinite life. capitalized and amortized over the first five years of the company's existence. expensed in the period in which they are incurred. capitalized and amortized over 20 years.