Bramble Industries Ltd. acquired two copyrights during 2020. One copyright was on a textbook that was developed internally at a cost of $35,600. This textbook is estimated to have a useful life of 4 years from July 1, 2020, the date it was published. The second copyright is for a history research textbook and was purchased from University Press on October 1, 2020, for $53,900. This textbook seems to have an indefinite useful life. How should these two copyrights be reported on Bramble's statement of financial position as at December 31, 2020? Copyright No. 1 should be . It would be reflected on the December 31, 2020 Copyright No. 2 should be . It would be reflected on the December 31, 2020 at $ at $

Bramble Industries Ltd. acquired two copyrights during 2020. One copyright was on a textbook that was developed internally at a cost of $35,600. This textbook is estimated to have a useful life of 4 years from July 1, 2020, the date it was published. The second copyright is for a history research textbook and was purchased from University Press on October 1, 2020, for $53,900. This textbook seems to have an indefinite useful life. How should these two copyrights be reported on Bramble's statement of financial position as at December 31, 2020? Copyright No. 1 should be . It would be reflected on the December 31, 2020 Copyright No. 2 should be . It would be reflected on the December 31, 2020 at $ at $

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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Sheridan Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $323,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. (b) The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been filed eight years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2022, the company paid its lawyer P10,000 for successfully defending the patent in a lawsuit. Required Prepare all the journal entries associated with the patent in 2021 and 2022.
Crane Company purchases an oil tanker depot on January 1, 2020, at a cost of $639,700. Crane expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. It is estimated that it will cost $69,980 to dismantle the depot and remove the tanks at the end of the depot's useful life. (a) Your answer is partially correct. Prepare the journal entries to record the depot and the asset retirement obligation for the depot on January 1, 2020. Based on an effective-interest rate of 6%, the present value required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) the asset retirement obligation on January 1, 2020, is $39,076. (If no entry is Date Account Titles and Explanation Debit Credit January 1, depot 2020 639700 Cash 639700 (To record the depot) January 1, 2020 depot 39076 Asset Retirement…
Warriors Productions recently purchased a copyright. Although the copyright is expected to last a minimum of 24 years, the chief executive officer of the company believes this B-list movie will only be useful for the next 19 years. The total cost of the copyright was $22,800. A. Calculate the amortization expense. B. Record the journal for the first year's expense. If an amount box does not require an entry, leave it blank. Accounts Receivable Amortization Expense Copyright Factoring Expense Patent
On January 1, 2019, MLW Company purchased a copyright for $1,000,000, having an estimated useful life of 16 years. In January 2023, MLW paid $150,000 for legal fees in a successful defense of the copyright. What should be the amount of copyright amortization expense for the year ended December 31, 2023?
D1.
On October 12, 2023, Simarov, Inc. purchases a Copyright to a song, written by a person who died on October 12, 1963 for $50,000 cash. Simarov believes they will be able to generate revenue from the Copyright for the remaining useful life. Prepare the journal entry to record the purchase. DR: CR: What is the remaining useful life of the Copyright? How much amortization expense will Simarov record each year? years Prepare the adjusting journal entry to record one year's amortization. DR: CR: What is the Net Book Value of the Copyright on October 1, 2027?
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