Computing Subsequent Carrying Amount of Patents In January of Year 1, Ford Co. purchased a patent from a research institution for $250,000. The patent was estimated to have a useful life of 15 years. In December of Year 2, Ford Co. unsuccessfully defended the patent in legal proceedings. The fair value of the patent on December 31 of Year 2, is now estimated to be $50,000 with a 2-year useful life. a. Record the entry for the legal fees of $20,000, paid in cash. b. Record any adjusting entry required on December 31 of Year 2. c. Determine the carrying value of the patent on December 31 of Year 2. Note: Round your final answers to the nearest dollar. Date a. Dec. 31, Year 2 b. Dec. 31, Year 2 C. Account Name To record legal fees. To record adjusting entry. Patent net carrying value, Dec. 31, Year 2 $ 0 V V V Dr. 0 0 0 0 Cr. 0 0 0 0

Computing Subsequent Carrying Amount of Patents In January of Year 1, Ford Co. purchased a patent from a research institution for $250,000. The patent was estimated to have a useful life of 15 years. In December of Year 2, Ford Co. unsuccessfully defended the patent in legal proceedings. The fair value of the patent on December 31 of Year 2, is now estimated to be $50,000 with a 2-year useful life. a. Record the entry for the legal fees of $20,000, paid in cash. b. Record any adjusting entry required on December 31 of Year 2. c. Determine the carrying value of the patent on December 31 of Year 2. Note: Round your final answers to the nearest dollar. Date a. Dec. 31, Year 2 b. Dec. 31, Year 2 C. Account Name To record legal fees. To record adjusting entry. Patent net carrying value, Dec. 31, Year 2 $ 0 V V V Dr. 0 0 0 0 Cr. 0 0 0 0

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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These are selected 2022 transactions for Blossom Company. Jan. 1 Mar. 1 Sept. 1 Purchased a copyright for $108,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $58,800. Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit Dec. 31 (To record copyrights amortization) Dec. 31 (To record patent amortization) (To record goodwill amortization)
Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $360,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $18,000. If required, round your answers to the nearest dollar. Question Content Area a. Determine the patent amortization expense for Year 4 ended December 31.$fill in the blank bc4756fc8040fa8_1 Question Content Area b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select -
answer in text form please (without image), Note: .Every entry should have narration please
Kleen Company acquired patent rights on January 10 of Year 1 for $881,100. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $49,200. Required: a. Determine the patent amortization expense for Year 4 ended December 31. b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. Refer to the Chart of Accounts for exact wording of account titles
Amortization Entries Kleen Company acquired patent rights on January 10 of Year 1 for $472,000. The patent has a useful life equal to its legal life of eight years. On January 7 of Year 4, Kleen successfully defended the patent in a lawsuit at a cost of $23,500. If required, round your answers to the nearest dollar. a. Determine the patent amortization expense for Year 4 ended December 31. $236,000 X b. Journalize the adjusting entry on December 31 of Year 4 to recognize the amortization. If an amount box does not require an entry, leave it blank. Amortization Expense-Patents Patents 29,500 X 29,500 X
Aa.38.
In January of Year 1, Ford Co. purchased a patent from a research institution for $600,000. The patent was estimated to have a useful life of 15 years. In December of Year 2, Ford Co. defended the patent in legal proceedings and successfully retained rights of ownership of the patent. The estimated life of the patent did not change from its original estimate. Legal expenses on December 31 were $48,000. Determine the (1) amortization for Year 2, and (2) carrying value of the patent on December 31 of Year 2.
What would the correct entries for this be
5c
Befort Company filed for a patent on a new type of machine. The application costs totaled $15,000. R&D costs incurred to create the machine were $75,000. In the year in which the company filed for and received the patent, it spent $25,000 in the successful defense of a patent infringement suit. Required 1. At what amount should the company capitalize the patent? 2. What are the factors used to determine the economic life of a patent?
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