In early January 2019, Bramble Corporation applied for a trade name, incurring legal costs of $15,600. In January 2020, Bramble incurred $9,000 of legal fees in a successful defense of its trade name. (a) Your answer is correct. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years. 2019 amortization 12/31/19 book value 2020 amortization 12/31/20 book value 1560 14040 2560 20480

In early January 2019, Bramble Corporation applied for a trade name, incurring legal costs of $15,600. In January 2020, Bramble incurred $9,000 of legal fees in a successful defense of its trade name. (a) Your answer is correct. Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years. 2019 amortization 12/31/19 book value 2020 amortization 12/31/20 book value 1560 14040 2560 20480

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

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In early January 2019, Bramble Corporation applied for a trade name, incurring legal costs of $15,600. In January 2020, Bramble
incurred $9,000 of legal fees in a successful defense of its trade name.
(a)
Your answer is correct.
Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the
trade name over 10 years.
2019 amortization
12/31/19 book value
2020 amortization
12/31/20 book value $
1560
14040
W
2560
20480

Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Bramble determines that
the trade name will provide no future benefits beyond December 31, 2023.
2020 amortization
$
12/31/20 book value $

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