In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years.In 20x4, G Co. started to develop a new improved patent to extend the life of the old patent. Development costs totaled P800,000. How much is the carrying amount of the patent on December 31, 20x4?

In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years.In 20x4, G Co. started to develop a new improved patent to extend the life of the old patent. Development costs totaled P800,000. How much is the carrying amount of the patent on December 31, 20x4?

Name: In 20x1, G Co. started to develop a patent. Total costs incurred duri
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Description: In 20x1, G Co. started to develop a patent. Total costs incurred during the yearamounting to P400,000. On January 1, 20x2, the patent was fully developed.Legal and registration cost incurred in registering the patent amounted toP300,000. It was esti

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PB: For each of the following unrelated situations, calculate the annual amortization expense and...

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May I ask for help with this question? I got an answer of 255,000 (Rounded Up) Please check. In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years.In 20x4, G Co. started to develop a new improved patent to extend the life of the old patent. Development costs totaled P800,000. How much is the carrying amount of the patent on December 31, 20x4?
May I ask for help with this question? I got an answer of 285,000 (Rounded Up) Please check. In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years. How much is the carrying amount of the patent on December 31, 20x2?
1. On 1/1/23 Meganco purchased a new lathe for $40,000 installed. The physical life of the lathe is 10 years with a salvage value of $5,000 at the end of that time period. The lathe was purchase for a contract that will provide revenue to Meganco for 5 years. The lathe will be sold at the end of the contract for $10,000. Required: Make the required journal entry on 12/31/23 and 12/31/24 assuming that the lathe is depreciated using 200% double declining balance. DATE ACCOUNT DR CR 2. Kenco is in the software development business. The company wants to purchase a new computer system that has an installed cash price of $25,000. Its current system was purchased 3 years ago for $15,000 and was being depreciated over 5 years using straight line deprecation with an estimated salvage value of $5,000. Required: a. Assume Kenco was able to sell the old computer for $12,500 Make the required journal entry to record the sale. DATE ACCOUNT DR CR b. Assume Kenco was able to sell the old computer for…
a. 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…
Post Company purchased a patent on January 1, 200X for $50,000. The patent has a useful life of 10 years. The accounting entry to record the patent amortization expense for the first year would be: Debit patent $5,000; credit accounts payable $5,000. Debit patent amortization expense $5,000; credit patent $5,000. Debit patent $50,000; credit accounts payable $50,000. Debit patent amortization expense $50,000; credit patent $50,000.
A contracting company purchased a new equipment at a cost of $200,000. The delivery and installation costs incurred by the company for the equipment is $40,000. Assuming the equipment has a service life of 10 years and a CCA rate of 30%, What is the remaining UCC value at the end of year 4? P.S. apply the half year rule.
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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.
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.
Grant Company has acquired a machine and equipment on January 2, 2018. The cost of the machine (including installation cost and decommissioning cost), P80,000,000 and the cost of the equipment is P20,000,000. The machine produces chemical products that are sold to overseas customers. As a condition to operate the machine, regular inspection for faults is performed every year at a cost of P1,000,000. The life of the machine is 10 years while the equipment 5 years. The company uses the straight-line method of depreciation. On January 1, 2021, a cost was incurred to overhaul the machine at a cost of P4,000,000. After the overhaul, the machine is expected to produced twice as it was producing in the prior years. Also, a residual value of P1,200,000 is expected on this machine. What is the total carrying value of the manufacturing plant (machine, and equipment) as of December 31, 2021?
Thompson Company incurred research and development costs of $120,000 and legal fees of $50,000 to develop a patent. The patent has a legal life of 20 years and a useful life of 10 years. What amount should Thompson record as Patent Amortization Expense in the first year? O a. $5,000. O b. $8,000. O c. $17,000. O d. $6,000.
What is the profit recognised for the year ended 31 December 20X8?