In early January 2020, Sunland Corporation applied for and received approval for a trade name, incurring legal costs of $44,800. In early January 2021, Sunland incurred $25,500 in legal fees in a successful defence of its trade name. (b) 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 0 decimal places, eg. 5,275.) 2020 2021 Amortization amount %24 24 %24 %24 Carrying amount

In early January 2020, Sunland Corporation applied for and received approval for a trade name, incurring legal costs of $44,800. In early January 2021, Sunland incurred $25,500 in legal fees in a successful defence of its trade name. (b) 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 0 decimal places, eg. 5,275.) 2020 2021 Amortization amount %24 24 %24 %24 Carrying amount

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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In early January 2020, Sunland Corporation applied for and received approval for a trade name, incurring legal costs of $44,800. In
early January 2021, Sunland incurred $25,500 in legal fees in a successful defence of its trade name.
(b)
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.)
2020
2021
Amortization amount
%$4
$4
%24
%24
Carrying amount
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(c)
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