Gadubhai Goosen Company bought a copyright for $91,800 on January 1, 2021, at which time the copyright had an estimated useful life of 15 years. On January 5, 2024, the company determined that the copyright would expire atthe end of 2029. How much should Goosen record retrospectively as the effect of change?Multiple Choice$0$6.120$7,650$13,770

When a company changes its estimate of the useful life of an asset, such as a copyright, it can have…

Answered: Goosen Company bought a copyright for…

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

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11P

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a. A copyright purchased on January 1, 2020, for a cash cost of $15,70O. The copyright is expected to have a 10-year useful life to Springer. b. Goodwill of $77,000 from the purchase of the Hartford Company on July 1, 2019. CA patent purchased on January 1, 2019, for $56,000. The Inventor had registered the patent with the U.S. Patent and Trademark Office on January 1, 2015. Springer Intends to use the patent for its remaining life. Required: 1. Compute the amortization expense of each intangible for the year ended December 31, 2020. The company does not use contra- accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the Income statement for 2020. 2b. Show how the three intangible assets should be reported on the balance sheet for 2020. (Assume there has been no Impairment of goodwill.)
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Current Attempt in Progress Presented below is information related to a copyright owned by Oriole Company at December 31, 2025. Cost Carrying amount Expected future net cash flows Fair value (a) $8,520,000 4,410,000 Assume that Oriole Company will continue to use this copyright in the future. As of December 31, 2025, the copyright is estimated to have a remaining useful life of 10 years. 3,910,000 3,320,000 eTextbook and Media Prepare the journal entry to record the impairment of the asset at December 31, 2025. The company does not use accumulated amortization accounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
Presented below is information related to a copyright owned by Mare Company at December 31, 2020. Cost $8,600,000 Carrying amount 4,300,000 Expected future net cash flows 4,000,000 Fair value 3,200,000 Assume that Mare Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Instructions a. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. The company does not use accumulated amortization accounts. b. Prepare the journal entry to record amortization expense for 2021 related to the copyright. c. The fair value of the copyright at December 31, 2021, is $3,400,000. Prepare the journal entry (if any) necessary to record the increase in fair value.
On January 1, 2024, Lanny, Inc. purchased a copyright for $410,000 cash. The copyright is expected to have a useful life of 25 years. The copyright has no residual value. What is the value of the copyright on the books at the end of 2028? O A) $16,400 B) $328,000 C) $164,000 O D) $82,000
Presented below is information related to a copyright owned by Music Company at December 31, 2022.Cost of copyright acquired on 1 January 2014 $8,600,000 Recoverable amount at December 31, 2022 3,500,000When the Music Company acquired the copyright in 2014, it estimated the useful life to be 20 years. Assume that Music Company will continue to use this copyright in the future. As of December 31, 2022, the copyright is estimated to have a remaining useful life of 10 years.Required(a) Prepare all the necessary journal entries at December 31, 2023. The company does not use accumulated amortization accounts.(b) The fair value of the copyright at December 31, 2023, is $3,700,000. prepare all the necessary journal entries at December 31, 2022..
Prepare the journal entry to record the impairment of the asset at December 31, 2025. The company does not use accumulated amortization accounts. (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. List debit entry before credit entry) Account Titles and Explanation Loss on Impairment (b) Copyrights eTextbook and Media List of Accounts Debit Account Titles and Explanation 990000 Debit Credit Prepare the journal entry to record amortization expense for 2026 related to the copyrights. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) 990000 Attempts: 3 of 4 used Credit
ABC Co. purchased a patent on January 1, 2018 for P300,00O. The patent was being amortized over its remaining legal life of 15 years. During 2020, ABC Co. determined that the economic benefits of the patent would not last longer than 10 years from the date of acquisition. What amount should be charged to patent amortization expense for the year ended December 31 2020? * 32,500 26,000 20,000 O 17,333 answer not given
ABC Co. purchased a patent on January 1, 2018 for P300,000. The patent was being amortized over its remaining legal life of 15 years. During 2020, ABC Co. determined that the economic benefits of the patent would not last longer than 10 years from the date of acquisition. What amount should be charged to patent amortization expense for the year ended December 31 2020?a. 32,500b. 26,000c. 20,000 d. 17,333 e. answer not given
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