None Crane Company incurred research anddevelopment costs of $111,000 and legalfees of $51,000 to acquire a patent. Thepatent has a legal life of 20 years and auseful life of 10 years.What amountshould Crane record asPatent Amortization Expense in the firstyear?a. $8,100.b. $5,100.c. $16,200.d. $0.

To calculate the patent amortization expense for the first year, we need to divide the total cost of…

Answered: Crane Company incurred research and…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7MC

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Similar questions

Thompson Company incurred research and development costs of $120,000 and legal fees of $50,000 to develop a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Thompson record as Patent Amortization Expense in the first year? O a. $5,000. O b. $8,000. O c. $17,000. O d. $6,000.
Ramsay Enterprises incurred research and development costs of $450,000 and legal fees of $18,000 to acquire a patent. The patent has a legal life of 15 years and a useful life of 9 years. What amount should Ramsay record as Patent Amortization Expense in the first year? O $52,000 O $31,200 O $1,200 O $2,000
Paleota Company purchased a patent from Finise for $234,000. At the time of purchase, the patent had a remaining useful life of 10 years. Determine the patent amortization expense for the first year. O $23,400 O $23,000 O $14,000 O $9,800
Requirements: a. How much would Lexicon record as amortization expense for this patent for the year ending December 31, 20x5? b. How much is the carrying of the patent on December 31, 20x5?
Equipment with a cost of $103,000 has a useful life of four years. Using straight- line amortization, what is the book value after three years. O a. $25,750. O b. $51,500. O c. $103,000. d. $77,250.
Post Company purchased a patent on January 1, 200X for $50,000. The patent has a useful life of 10 years. The accounting entry to record the patent amortization expense for the first year would be: Debit patent $5,000; credit accounts payable $5,000. Debit patent amortization expense $5,000; credit patent $5,000. Debit patent $50,000; credit accounts payable $50,000. Debit patent amortization expense $50,000; credit patent $50,000.
weat Subject-Accounting
This question related with MFRS 116
Current Attempt in Progress Cullumber Company incurred research and development costs of $89000 to develop a patent, and legal fees of $29000 to register the patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Cullumber record as Patent Amortization Expense in the first year if the straight-line method is used? O $5900 O $2900 O $11800 O $0
7. An asset was purchased for P 150,000 and retired at the end of 15 years with a salvage value of P 5,000. The annual operating cost was P 18,000. Determine the annual cost of the asset based on an interest rate of 8%. A. P 29,536 B. P 35,340 C. P 441,753.55 D. P 369,195.45
4. A broadcasting corporation purchased equi pment worth P57, 000 and paid P1, 500 for freight and delivery charges to the site. The equ i pment has a normal life of ten years with a trade-in vaíue of P5, 000 against the purchase of new equipment at the end of life. The interest is 6%. a. What is the annual depreciation cost? b. What is the total depreciation cost in 7 years? c. What is the book value in 7 years?
An asset has a cost of $60,000 with a residual value of $12,000. It has a life of 5 years and was purchased on January 1. Its fourth full year of depreciation expense under double - declining - balance will be: (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) O A. $5,184. O B. $8,640. O C. $0. O D. $960.

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