In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of P160,000. Based on new market research, HUMID determines that the market value of the trade name is P120,000. In January 2021, HUMID incurred P7,800 of legal fees in a successful defense of its trade name. Trade name should be amortized based on legal life. What is the cost of Tradename?
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- 5. Barkley Corp. obtained a tradename in January 2024, incurring legal costs of $72,000. The company amortizes the tradename over 8 years using the straight-line method. Barkley successfully defended its tradename in January 2025, incurring $19,600 in legal fees. At the beginning of 2026, based on new marketing research, Barkley determines that the fair value of the tradename is $60,000. Estimated future net cash flows from the tradename are $64,000 on January 4, 2026. Instructions Prepare the necessary journal entries for the years ending December 31, 2024, 2025, and 2026. Show all computations. misami arb broup qual. On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. RequiredCompute the ending carrying value of the tradename for 2022 and 2023. Should the company amortize the tradename? *Note: Show the solution step by step with formulaIgnoring the response for part (b), compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Bramble determines that the fair value of the trade name is $16,320. Estimated total future cash flows from the trade name is $17,520 on January 3, 2021. 2021 amortization 12/31/21 book value $ $
- On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. RequiredCompute the ending carrying value of the tradename for 2022 and 2023. Should the company amortize the tradename? Show the solution step by step.On January 11, 2022, The Hughes Company applied for a tradename. Legal costs associated with the application were P20,000. In January 2023, the company incurred P8,000 of legal fees in a successful defense of its tradename. The tradename was not impaired in 2022 and 2023. Required Compute the ending carrying value of the tradename for 2022 and 2023. Should thecompany amortize the tradename?In early January 2019, Outkast Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Outkast incurred $7,800 of legal fees in a successful defense of its trade name. Instructions a. 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. b. Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Outkast determines that the trade name will provide no future benefits beyond December 31, 2023. c. Ignoring the response for part .b., compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Outkast determines that the fair value of the trade name is $15,000. Estimated total future cash flows from the trade name is $16,000 on January 3, 2021.
- In early January 2020, Pharoah Corporation applied for and received approval for a trade name, incurring legal costs of $46,400. In early January 2021, Pharoah incurred $24,000 in legal fees in a successful defence of its trade name. Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount at December 31, 2021, if the company amortizes the trade name over its 16-year legal life. (Round answers to O decimal places, e.g. 5,275.) Amortization amount Carrying amount Amortization amount tA Carrying amount $ +A $ CA 2020 Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and carrying amount at December 31, 2021, if the company amortizes the trade name over a useful life of 5 years. CA ta 2020 $ LA $ LA $ 2021 LA 2021In early January 2019, Sheffield Corporation applied for a trade name, incurring legal costs of $15,800. In January 2020, Sheffield incurred $8,100 of legal fees in a successful defense of its trade name. (a) Your Answer Correct Answer 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.On May 1, 2020, Hug Company leased equipment to Rave Company which expires on May 1, 2021. Rave could have bought the equipment from Hug for P3,200,000 instead of leasing it. Hug's accounting records showed a carrying amount for the equipment on May 1, 2020 of P2,800,000. Hug's depreciation on the equipment in 2020 was P360,000.During 2020, Rave paid P720,000 in rentals to Hug for the 8-month period. Hug incurred maintenance and other related costs under the terms of the lease of P64,000 in 2020. After the lease with Rave expires, Hug will lease the equipment to another entity tor two years. What is the pretax income derived by Hug for 2020? a. 296,000 b. 360,000 C. 656,000 d. 720,000
- In early January 2024, Monty Corporation applied for a trade name, incurring legal costs of $16,800. In January 2025, Monty incurred $7,200 of legal fees in a successful defense of its trade name. (a) Your answer is correct. 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 (b) 12/31/24 book value 2025 amortization Question Part Score $ $ 12/31/25 book value $ $ eTextbook and Media 2025 amortization Your answer is correct. $ 1680 12/31/25 book value $ 15120 2480 Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025, Monty determines that the trade name will provide no future benefits beyond December 31, 2028. 19840 5580 Attempts: 1 of 4 used 16740 2/2Stars Corporation incurred a P198,900 of research and development costs to develop a product for which a patent was granted on January 2, 2017. Legal fees and other costs associated with registration of the patent totaled P44,200. On January 2, 2020, Stars paid P62,400 for legal fees in a successful defense of the patent. The patent has useful economic life of 20 years. What amount should Stars record as amortization expense for 2020?In early January 2024, Ayayai Corporation applied for a trade name, incurring legal costs of $15,800. In January 2025, Ayayai incurred $7,200 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 12/31/25 book value $ LA LA $ of SUPPORT