e use of
Q: Romo Company spent $190,000 developing a new process,$45,000 in legal fees to obtain a patent,…
A:
Q: e Fairy Company purchased a site for limestone quarry for P 100,000 on January 2,2020. It estimates…
A: a) The depletion cost per ton. Cost of quarry = P100,000 Asset retirement obligation value =…
Q: In 2016 Sanford LTD. received a government grant of $100,000 to be used for the purchase of a…
A: Accounting treatment for government grants received.
Q: The Wagner Company made the following expenditures for research and development early in 2014:…
A: Expenses: Expenses are costs incurred for the operations of a business. The costs incurred for…
Q: During 2017, Lyle company incurred P400,000 of research and development costs in its laboratory to…
A: Above mentioned patent meets the recognition criteria of intangible assets , it is a self generated…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: a. What amount of research and experimental expenses for 2023, 2024, and 2025 may Bethany deduct?…
A: Amortization is an accounting method where there is a reduction in the book value of loans or…
Q: Sandstorm Corporation decides to develop a new line of paints. The project begins in 2023. Sandstorm…
A: Deduction refers to the amount that is subtracted or "deducted" from a person's or entity's taxable…
Q: Cullumber Company from time to time embarks on a research program when a special project seems to…
A: Number of years 8 Years Undepreciable costs of patent ( 16250 -3250) 13000 Add : Cost of defend…
Q: On January 3, 2015, the Pomelo Company spent P480,000 to apply for and obtain a patent on a newly…
A: A patent is legal right to use the use the intangible asset. The cost of the patent is amortized…
Q: During 2022, MinMin Co. purchased a second-hand machine at a price of P3,200,000. A cash payment of…
A: An expense that raises the cost base of a fixed asset on a company's balance sheet is known as a…
Q: Irwin, Inc. constructed a machine at a total cost of $79 million. Construction was completed at the…
A: Depreciation - It the amount reduce from the assets due to usage of the same over a period of time.…
Q: In 2019, Austin Powers Corporation developed a new product that will be marketed in 2020. In…
A: Determine the amount of research and development cost that A, Powers corporation should record in…
Q: Irwin, Incorporated constructed a machine at a total cost of $68 million. Construction was completed…
A: Journal Entry for Irwin, Incorporated's Machine in 2024 Scenario: Machine cost: $68 million…
Q: In 2020, ABC Machine Company spent P352,000 on research and development costs for an invention. This…
A: The expenses related to the patent will be the amortization expense and other expenses incurred…
Q: The amount to be capitalized as the cost of the machine is :-
A: The concept in this scenario is the determination of the cost of an asset that a company acquires.…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A: Detailed explanation:Amortization per year = cost / useful life = 27.0 million / 9 years = 3.0…
Q: On January 1, 2022, Nader Corp. purchased timberlands for $1,000,000 cash. Under the terms of the…
A: A legal obligation that is associated with the retirement of a tangible, long-lived asset is…
Q: A company purchases two pieces of research equipment at the beginning of 2024. The first piece of…
A: Research and development expense need to be recognized in the year fully when it is generates…
Q: Cullumber Company from time to time embarks on a research program when a special project seems to…
A: Journal entry is defined as recording of the transactions into the books of accounts of the company…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A: Amortization expense is the non-cash expense for the long-term assets from the day it Is put in use…
Q: For each of the following unrelated situations, calculate the annual amortization expense and…
A: Amortization expense = Purchase cost of the Patent /Estimated useful life
Q: In January, 2022, Harmony Inc. has the following expenditures related to manufacturing a new…
A: Machineries are the most widely utilized fixed asset in industrial businesses. The acquisition cost…
Q: Bethany incurred $20,200 in research and experimental costs for developing a specialized product…
A: Research and experimental expenses refer to the costs incurred by a company in the process of…
Q: Red Co. has a patent on a communication process. The company has amortized the patent on a…
A:
Q: Daschle LLC completed some research and development during June of the current year. The related…
A: Formula: Amortization expense = Total cost x ( 7 months / 60 Months ) As Remaining period in the…
Q: In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that…
A: Amortization expense: A charge created on intangible asset for its use over the life of asset. It is…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On June 1, 2023, Concord spent $9,000 to successfully prosecute a patent infringement suit. As a…
A: The process of recording an accounting transaction in a company's accounting records is known as an…
Q: On January 3, 2012, the July Company spent P196,000 to apply for and obtain a patent on a newly…
A: A patent is a legal right to an invention that is given to a inventor company or entity for securing…
Q: Sheridan Company from time to time embarks on a research program when a special project seems to…
A: The research and development cost incurred on a research product is expenses in the period it…
Q: G-Waste Limited, a leading waste management company, acquired a parcel of land on January 1, 2014 at…
A: Whenever it is required to restore the land at the end of useful life, the cost required to restore…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A: The intangible assets like patents and copyrights are amortized. The tangible assets are…
Q: In 2020, Murphy Manufacturing Inc. acquired and placed in service a piece of machinery to…
A: Section 179 is related to the property deduction which normally is depreciation. Deduction section…
Q: Sandstorm Corporation decides to develop a new line of paints. The project begins in 2018. Sandstorm…
A: Calculation of the amortization expense per month:
Q: The NCR Company purchased a varnishing machine for P150,000 on January 1, 2017. The company…
A: The NCR Company purchased a varnishing machine for P150,000 on January 1, 2017. The company received…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A:
Q: Alexandria Company started a research and development project on a new product on January 1, 2021.…
A: Patent: A patent is a type of intellectual property and recorded as intangible asset in books of…
Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…
A: Patent Cost = 22.5 million Estimated Life in 2017 = 9 years Per year amortisation = 22.5 / 9 = 2.5…
During 2014, Star Corporation developed a patent. Expenditures related to the patent were legal fees for patent registration, P7,000; tests to perfect the use of the patent for production processes, P6,000; research costs in the research laboratory, P21,000; and
a. P 1,824
c. P 1,882
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- On January 1, 2020, Blessed Company purchased a Patent for P280,000. The asset has a legal life of 10 years but due to rapidly changing technology, Blessed estimates a useful life of only 7 years. On January 1, 2022, Blessed is uncertain that the process can actually be made economically feasible, and decides to write down the patent. The future cash inflows expected from the patent will be P40,000 per year for the remaining life of the patent. The present value of these cash flows, discounted at 12% market interest rate, is P144,200. The fair value less cost to sell is P130,000.MunabhaiVan Frank Telecommunications has a patent on a cellular transmission process. The company has amortized thepatent on a straight-line basis since 2014, when it was acquired at a cost of $9 million at the beginning of thatyear. Due to rapid technological advances in the industry, management decided that the patent would benefit thecompany over a total of six years rather than the nine-year life being used to amortize its cost. The decision wasmade at the beginning of 2018.Required:Prepare the year-end journal entry for patent amortization in 2018. No amortization was recorded during the year.
- On January 1, 2019, Sinaran purchased equipment. Following are the costs incurred in connection with the purchase of this equipment: - Purchase price of IDR 500,000,000 plus 10% VAT (IDR 50,000,000) which can be credited - The company pays an independent professional to modify the equipment to fit the specifications desired by the company. The fee paid for professional services is IDR 40,000,000 and for the spare part costs for the modification purposes IDR 10,000,000. - The cost of testing the equipment so that it functions according to its purpose is Rp.25,000,000. - The proceeds from the sale of goods resulting from the testing process are IDR 5,000,000. Requested: Calculate the cost of the equipment according to PSAK 16Romo Company spent $190,000 developing a new process, $45,000 in legal fees to obtain a patent, and $91,000 to market the process that was patented, all in the year 2020. How should these costs be accounted for in 2020?Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $18 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2017. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2021 (before adjusting and closing entries). What is the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate?
- Irwin, Inc. constructed a machine at a total cost of $39 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $3 million. At the beginning of 2021, Irwin decided to change to the sum-of-the-years’-digits method. Ignoring income taxes, prepare the journal entry relating to the machine for 2021.The Kaltec Construction Company purchased a piece of machinery on June 29, 2013 for $53 000. Freight costs came to $800. It cost $1 700 to install and test the machinery. At this time it was estimated that the machine would be used for six years and would have a residual value of $8 000 at that time. Before recording the 2016 amortization expense, the owners realized that this machinery would last only five years, and therefore revised the amortization expense calculation. On July 2, 2017, the machine broke down and rather than repair it, the company decided to sell it for $12 000. a) Prepare the journal entry to record the purchase of the machine on June 29, 2013. b) Calculate the amortization charges that would appear on the December 2013, 2014 and 2015 income statements, using the straight line method of amortization. c) Show the journal entry for the 2013 amortization. d) Show how the machine would appear in the Kaltec Construction Company Balance Sheet on December 31, 2015,…On January 3, 2015, the Pomelo Company spent P480,000 to apply for and obtain a patent on a newly developed product. The patent had an estimated useful life of 10 years. During 2017, the company spent P90,000 in successfully prosecuting an attempted infringement of the patent. In the first week of 2020, the company incurred additional costs of P200, 000 relevant to the patent. It is expected that future economic benefits will flow to the enterprise as a result of this expenditure through cost savings and the asset’s use is estimated to be extended by additional 5 years. How much is the patent amortization for the year 2020?
- Pineapple Ltd applied for a government grant of $1,000,000 on 5 January 2017 to cover part of the cost of a new machine. The grant was approved on 1 February 2017 and the government released the fund on 1 April 2017. Pineapple purchased the machine for $5,000,000 with cash on 1 June 2017 and the machine was used for production The machine was depreciated over its estimated useful life of 10 years on method and depreciation was calculated monthly. Pineapple Ltd prepared statements at 31 December each year. (a) On which date should Pineapple Ltd recognize the government grant? Explain. (b) Assume Pineapple Ltd recognized the government grant as deferred income. Prepare the extracts of statement of financial position and the statement of profit or loss for the year ended 31 December 2017. Show your workings. (c) The life of a business is divided into specific time periods, usually a year, to measure results of operations for each such time period and to portray financial…During 2021, Culver Corporation spent $169,920 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2021, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $45,360 related to the patent were incurred as of October 1, 2021.Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2020, when it was acquired at a cost of $21.6 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2024. Required: Prepare the year-end journal entry for patent amortization in 2024. No amortization was recorded during the year. Record amortization expense
