Hello tutorial please provide correct answer general Accounting question Galena Company purchases a patent for $131,820 onJanuary 2, 2010. Its estimated useful life is 12 years.Prepare the journal entry to record patent expense for thefirst year.

Step 1: Define Intangible AssetsIntangible assets do not have physical existence which means that…

Answered: Galena Company purchases a patent for…

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 68IIP

See similar textbooks

Similar questions

On September 1, 2015, Johnas, Inc. acquired a patent for $600,000. The patent has 16 years remaining in its legal life. However, Johnas, Inc. expects the patent's technology to have a useful life of 8 years. Prepare the journal entries to record the acquisition of the patent and the amortization expense for 2015. Date Account Debit Credit
Financial Accounting
Blue Co. purchased a patent from the inventor for $36,000 on March 1, 20X6. Blue Co.’s fiscal year-end is December 31 each year. On the March 1, 20X6 purchase date, the remaining legal life of the patent was 6 years based on the original legal life of 20 years less 14 years since the patent was registered. Also on the March 1, 20X6 purchase date, the estimated remaining useful life of the patent for Blue Co.’s purposes is 3 years. Blue Co. amortizes patent costs in the year of acquisition for the portion of the year the patent was held. What is the patent’s book or carrying value as of December 31, 20X7? a. $14,000 b. $12,000 c. $22,000 d. $10,000
On January 1, 2011, the account balances of Miami Company showed patent cost of P1,920,000 and related accumulated amortization of P240,000. The patent was purchased on January 1, 2009 at which date the remaining legal life was 16 years. On January 1, 2011, the useful life of the patent was determined to be 8 years from the date of acquisition.On January 1, 2011, Miami paid P800,000, of which three-fourths was for a trademark and one-fourth was for the other entity’s agreement not to compete for a 5-year period in the line of business covered by the trademark. Miami considers the life of the trademark indefinite. Moreover, Miami agreed to pay P50,000 to the other entity as consulting fee each year for 5 years payable every January 1. Question: What is the amortization of intangible assets for 2011?
On May 1, 2014 Barton Corporation purchased for cash of $37.500 a patent with a useful ife of 10 years, Give the entries to record: a. The purchase of the patent. b. The amortization on December 31, 2014 (calculated to the nearest whole month). Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format ddimmm (1e. January 15 would be 15/Jan). Ensure accuracy in your calculations and round only your final answer to the nearest whole dollar, Date General Journal Account/Explanation Page GJ2 F Debit Credit
Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of P120,000, and accumulated amortization of P 60,000. The Patent is being amortized for its useful life of eight years. On January 1, 2018, Mayumi purchased a competing patent for a total cost of P75,000. The newly purchased patent is expected to be used for five years. On July 1, 2018, Mayumi spent P 50,000 to defend its new patent against an infringement suit. What is the carrying value of the patents on December 31, 2018?
On January 2 of the current year, a company purchased a patent for $35,000 with a useful life of 10 years. Prepare the journal entry to amortize the patent at the end of the first year using the general journal.
Reported in the ledger of Mama Company On December 31, 2017, is a Patent account with a balance of P120,000, and accumulated amortization of P 60,000. The Patent is being amortized for its useful life of eight years. On January 1, 2018, Mayumi purchased a competing patent for a total cost of P75,000. The newly purchased patent is expected to be used for five years. On July 1, 2018, Mama spent P 50,000 to defend its new patent against an infringement suit. What is the carrying value of the patents on December 31, 2018?
Martinez, Inc. acquired a patent on January 1, 2017 for $41,700 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2018, before any adjustments were recorded for the year, management determined that the remaining useful life was 7 years (with that new estimate being effective as of January 1, 2018). On June 30, 2019, the patent was sold for $26,700.Required: Prepare the journal entry to record the acquisition of the patent on January 1, 2017. Prepare the journal entry to record the annual amortization for 2017. Compute the amount of amortization that would be recorded in 2018. Determine the gain (loss) on sale on June 30, 2019. Prepare the journal entry to record the sale of the patent on June 30, 2019.
Flounder Corporation purchases a patent from Shamrock Inc. on July 1, 2017, for $260,000. The patent has a remaining legal life of 9 years. Flounder estimates the patent will have a useful life of 4 years, based on expected product innovations in the market. Prepare Flounder's journal entries to record the purchase of the patent and 2017 amortization. (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.) Account Titles and Explanation Debit Credit (To record purchase of patents) (To record amortization of patents)
41 Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of P120,000, and accumulated amortization of P 60,000. The Patent is being amortized for its useful life of eight years. On July 1, 2018, Mayumi spent P 30,000 to defend the patent against an infringement suit. On January 1, 2019, with the rapid change in technology, the company determined that the patent will be of no value to the company and that a loss on patent obsolescence has to be recognized.How much is the loss on patent obsolescence?
Munabhai

SEE MORE QUESTIONS

Recommended textbooks for you

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

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

Publisher:

Cengage Learning

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

Galena Company purchases a patent for $131,820 on January 2, 2010. Its estimated useful life is 12 years. Prepare the journal entry to record patent expense for the first year.