At what amount should brandon ltd. Record patent u? Brandon Ltd. acquires 3 patents from Myers Corp. for a totalprice of $450,000. The patents were carried on Myers' books asfollows:•Patent X: $6,000•Patent Y: $3,000•Patent Z: $4,000At the time of acquisition, the fair market values (FMV) of thepatents were:•Patent X: $30,000.Patent Y: $300,000.Patent Z: $90,000At what amount should Brandon Ltd. record Patent Y?a. $150,000b. $300,000c. $3,000d. $321,435

Explanation of Patent: A patent is an intangible asset that gives its owner exclusive rights to an…

Answered: Brandon Ltd. acquires 3 patents from…

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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At what amount should brandon ltd.record patent Y?
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On January 1, 2025, Caramel Company purchased 100% of the common stock of Harlor Company for $590,000 cash. Fair values differed from book values as follows: Fair value Land 100,000 Patent 250,000 Bonds Payable 105,000 The trial balances of the companies at the acquisition date are as follows: Trial Balance Account Titles Caramel Harlor Cash 650,000 65,000 Land 120,000 30,000 Buildings, net 250,000 180,000 Goodwill 400,000 200,000 Current Liabilities 170,000 75,000 Bonds Payable 500,000 100,000 Common Stock 70,000 30,000 APIC 350,000 70,000 Retained Earnings 330,000 200,000 The amount reported for Cash on the consolidated balance sheet at the acquisition date is
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Karlyn Company had the following property acquisitions during the current year:• Acquired a tract of land with an existing building in exchange for 50,000 ordinary shares of P100 par value with a market price of P120 per share on the date of acquisition. The last property tax bill indicated assessed value of P2,800,000 for the land and P1,200,000 for the building. However, the land has a fair value of P5,500,000 and the building has no determinable fair value. Shortly after acquisition, the building was razed at a cost of P100,000 in anticipation of a new building construction.• Received land from a major shareholder as an inducement to locate a plant in the city. No payment was required but Karlyn Company paid P50,000 for legal expenses for land transfer. The land is fairly valued at P2,000,000.What is the total increase in land as a result of the acquisition

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