Easy Peasy Lawn made $8 billion worth of revenue on lawn mowers this year. The total market for lawn mowers is $25 billion. What is Easy Peasy Lawn'ş market share?
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- F2 At the end of 2026, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf Channel), the Old Master reporting unit has been losing money. The fair value of the Old Master reporting unit is $400,000. Magilke has collected the following information related to the company's intangible assets. Intangible Asset Trade names #3 Copyrights E D с F3 Prepare the journal entries required, if any, to record impairments on Windsor intangible assets. Assume that any amortization for 2026 has been recorded and that the carrying value of the reporting unit is $480,000 (which reflects recognition of any impairments other than goodwill). (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. List all debit entries before credit entries.) Account Titles and Explanation Loss on Impairment…< eBook Print Item Exercise 12-19 (Algorithmic) (LO. 3) Brennen sold a machine used in his business for $274,600. The machine was purchased eight years ago for $494,280. Depreciation up to the date of the sale for regular tax purposes was $315,790 and $284,211 for AMT purposes. What AMT adjustment arises as a result of the sale of the machine? For AMT purposes, Brennen has a adjustment of $ related to the sale.The Befort Company field for a patent on a new type of machine. The application costs totaled P12,000. R&D costs incurred to create the machine were P75,000. In the year in which the company filed for and received the patent, it spent P20,000 in the successfuldefense of a patent infringement suit. Required1. At what amount should the company capitalize the patent?2. How would you determine the economic life of the patent?
- Required information [The following information applies to the questions displayed below.] Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Development of a prototype device Testing and modification of the prototype Legal fees for patent application Legal fees for successful defense of the new patent Total $4,100,000 1,200,000 610,000 410,000 81,000 41,000 $6,442,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. Patont costs capitalized Required: 1. Determine the amount Satellite Systems should capitalize to the Patent account in the balance sheet.2 Required information [The following information applies to the questions displayed below.) Satellite Systems modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures: Basic research to develop the technology Engineering design work Testing and modification of the prototype Development of a prototype device t Legal fees for patent application Legal fees for successful defense of the new patent Total $ 3,400,000 1,080,000 540,000 340,000 74,000 34,000 $ 5,468,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all costs of the patent. Management contends that the device represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized. 2. How much should Satellite Systems report as research and development expense in the income statement? Research and development expensea. A patent purchased this year from Miller Co. on January 1 for a cash cost of $1,600. When purchased, the patent had an estimated life of 8 years. b. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $240,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Compute the amortization of each intangible for the current year ended December 31. (Do not round intermediate calculations.) Amortization…
- wh.ca/d21/le/content/126096/viewContent/7921257/View mitaltar CETIL Situation 4: On March 31, 2017, Wayside Corporation purchased a new piece of manufacturing equipment for $1,615,000. At that time, the estimated useful life of the equipment was five years, with a residual value of $325,000. On August 1, 2020, due to increased competition causing a decreased selling price for its product, Wayside decided to discontinue the product. By December 31, 2020, there was a formal plan in place to sell the equipment, and the equipment qualified for classification as held for sale. At December 31, 2020, the equipment's fair value less costs to sell was $260,000. Due to matters beyond Wayside's control, a potential sale of the equipment fell through in 2021, although consumer confidence in Wayside's product increased significantly because of reported defects in its competitors' products. The equipment remained classified as held for sale at December 31, 2021, when the equipment's fair value less…Current Attempt in Progress Pharoah Company incurred $890000 of research and development costs in its laboratory to develop a new product. It spent $150000 in legal fees for a patent granted on January 2, 2022. On July 31, 2022, Pharoah paid $90000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2022? O $0. $240000. $890000. O $1130000.Testbank Multiple Choice Question 65 On February 1, 2020, Waterway Industries purchased a parcel of land as a factory site for $310000. An old building on the property was demolished, and construction began on a new building which was completed on November 1, 2020. Costs incurred during this period are listed below: Demolition of old building $ 20700 Architect's fees 34700 Legal fees for title investigation and purchase contract 4500 Construction costs 1378000 (Salvaged materials resulting from demolition were sold for $8600.) Waterway should record the cost of the land and new building, respectively, as O $322100 and $1417200. O $322100 and $1412700. O $326600 and $1412700. O $335200 and $1404100.
- Exercise 12-04 Presented below is selected information for Carla Vista Company. Answer the questions asked about each of the factual situations. (Do not leave any answer field blank. Enter 0 for amounts.) 1. Carla Vista purchased a patent from Vania Co. for $1,290,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Carla Vista determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020? The amount to be reported 2. Carla Vista bought a franchise from Alexander Co. on January 1, 2019, for $395,000. The carrying amount of the franchise on Alexander's books on January 1, 2019, was $395,000o. The franchise agreement had an estimated useful life of 30 years. Because Carla Vista must enter a competitive bidding at the end of 2021,…The Befort Company field for a patent on a new type of machine. The application costs totaled P12,000. R&D costs incurred to create the machine were P75,000. In the year in which the company filed for and received the patent, it spent P20,000 in the successful defense of a patent infringement suit. Required 1. At what amount should the company capitalize the patent? 2. How would you determine the economic life of the patent? Note: Show the solution or formula of every problem.During 2018, Matsumura Ltd. spent ¥170,000 in research costs. As a result, a new productcalled the New Age Piano was patented. The patent was obtained on October 1, 2018, and hada legal life of 20 years and a useful life of 10 years. Legal costs of ¥24,000 related to the patentwere incurred as of October 1, 2018. (Amounts are in thousands.)Required:1. Prepare all journal entries required in 2018 and 2019 as a result of the transactionsabove.2. On June 1, 2020, Matsumura spent ¥12,400 to successfully prosecute a patentinfringement suit. As a result, the estimate of useful life was extended to 12 years from June 1,2020. Prepare all journal entries required in 2020 and 2021.3. In 2022, Matsumura determined that a competitor's product would make the New AgePiano obsolete and the patent worthless by December 31, 2023. Prepare all journal entriesrequired in 2022 and 2023.
