Ice Giant Company purchased a patent on January 1, 2015 for P6,000,000. The original useful life was estimated to be 15 years. However, in December 2020 Icegiant’s controller received information proving conclusively that the product protected by the Ice Giant patent would be obsolete within four years. Accordingly, the entity decided to write off the unamortized portion of the patent cost over five years beginning in 2020. What is the patent amortization for 2015?

Ice Giant Company purchased a patent on January 1, 2015 for P6,000,000. The original useful life was estimated to be 15 years. However, in December 2020 Icegiant’s controller received information proving conclusively that the product protected by the Ice Giant patent would be obsolete within four years. Accordingly, the entity decided to write off the unamortized portion of the patent cost over five years beginning in 2020. What is the patent amortization for 2015?

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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For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.
Brazen Company purchased a patent on January 1, 2015 for P6,000,000. The original life of the patent was estimated to be 15 years. However, in December 2020, the controller received information proving conclusively that the product protected by the patent would be obsolete within four years. The entity decided to write off the unamortized portion of the patent cost over five years beginning in 2020. What is the patent amortization for 2020?
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What amount should be charged to patent amortization expense for the year ended December 31, 2018?
Dazzle Corporation purchased a patent for P7,140,000 on January 2014. The patent is being amortized over the remaining legal life of 15 years expiring on January 2029. During 2017, Dazzle Corporation determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. Using the same information on number (33), what amount should be charged to patent amortization expenses for the year ended December 31, 2017, assuming there is no change in the patent's useful life? OP816,000 O P476,000 O None of the above OP571.200 OP4,896,000
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Brace Company purchased a patent on January 1, 2015 for P 6,000,000. The original life of the patent was estimated to be 15 years. However on December 31, 2020, the controller received information proving conclusively that the product protected by the patent would be obsolete within four years. The entity decided to write off the unamortized portion of the patent cost over five years beginning 2020. the unamortized portion of the patent on December 31, 2020, before adjustment for amortization in 2020 is: ____________ 2. The entry to record amortization of patent on December 31, 2020:
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How much is the amortization of patent for the year 2021? Provide a detailed answer.