**Educational Website Transcription**---**Context:**In early January 2024, Cheyenne Corporation applied for a trade name, incurring legal costs of $16,000. In January 2025, Cheyenne incurred $8,100 of legal fees in a successful defense of its trade name.---**Problem: (a)**Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. *(Round answers to 0 decimal places, e.g. 5,125.)*---**Input Fields:**- **2024 amortization:** $ _______- **12/31/24 book value:** $ _______- **2025 amortization:** $ _______- **12/31/25 book value:** $ _______---

In early January 2024, Cheyenne Corporation applied for a trade name, incurring legal costs of $16,000. In January 2025, Cheyenne incurred $8,100 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization 12/31/24 book value 2025 amortization tA $ LA $ 12/31/25 book value $ tA

In early January 2024, Cheyenne Corporation applied for a trade name, incurring legal costs of $16,000. In January 2025, Cheyenne incurred $8,100 of legal fees in a successful defense of its trade name. (a) Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. (Round answers to O decimal places, e.g. 5,125.) 2024 amortization 12/31/24 book value 2025 amortization tA $ LA $ 12/31/25 book value $ tA

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

**Educational Website Transcription**

---

**Context:**

In early January 2024, Cheyenne Corporation applied for a trade name, incurring legal costs of $16,000. In January 2025, Cheyenne incurred $8,100 of legal fees in a successful defense of its trade name.

---

**Problem: (a)**

Compute 2024 amortization, 12/31/24 book value, 2025 amortization, and 12/31/25 book value if the company amortizes the trade name over 10 years. *(Round answers to 0 decimal places, e.g. 5,125.)*

---

**Input Fields:**

- **2024 amortization:** $ _______
- **12/31/24 book value:** $ _______
- **2025 amortization:** $ _______
- **12/31/25 book value:** $ _______

---

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Follow-up Question

Ignoring the response for part (b), compute the 2026 amortization and the 12/31/26 book value, assuming that at the
beginning of 2026, based on new market research, Cheyenne determines that the fair value of the trade name is $14,720.
Estimated total future cash flows from the trade name is $15,920 on January 3, 2026.
2026 amortization
GA
12/31/26 book value $

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Follow-up Question

Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025, Cheyenne
determines that the trade name will provide no future benefits beyond December 31, 2028.
2025 amortization
12/31/25 book value
$
LA
$
+A

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