In early January 2024, Bramble Corporation applied for a trade name, incurring legal costs of $15,600. In January 2025, Bramble incurred $9,000 of legal fees in a successful defense of its trade name. c)Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025, Bramble determines thatthe trade name will provide no future benefits beyond December 31, 2028.2025 amortization12/31/25 book valueeTextbook and Media+A$Save for Later Last saved 12 hours ago.Attempts: unlimited Submit Answer* Your answer is incorrect.Ignoring the response for part (b), compute the 2026 amortization and the 12/31/26 book value, assuming that at the beginningof 2026, based on new market research, Bramble determines that the fair value of the trade name is $16,320. Estimated totalfuture cash flows from the trade name is $17,520 on January 3, 2026.2026 amortization12/31/26 book value

Amortization is calculated by dividing the value of intangible assets by its useful life. It is…

In early January 2024, Bramble Corporation applied for a trade name, incurring legal costs of $15,600. In January 2025, Bramble incurred $9,000 of legal fees in a successful defense of its trade name.

In early January 2024, Bramble Corporation applied for a trade name, incurring legal costs of $15,600. In January 2025, Bramble incurred $9,000 of legal fees in a successful defense of its trade name.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Smith Co. filed suit against Western, Inc., seeking damages for patent infringement. Western’s legal…

A: In the given situation, it is probable that the company has to incur the losses and the amount range…

Q: 5. Barkley Corp. obtained a tradename in January 2024, incurring legal costs of $72,000. The company…

A: Journal entry is a primary entry that records the financial transactions initially. The transactions…

Q: Blette Company is the defendant in a lawsuit filed by Kale in 2021 disputing the validity of a…

A: In simple terms contingent liability indicates a potential liability. It may or may not get…

Q: Perry Peter (pty) Ltd paid the following legal expenses to attorneys for the 2022 year of…

A: "Since you have asked multiple questions, the first question was answered for you. If you want the…

Q: Oriole Company discovered an error in its accounting records in 2025. Oriole had purchased a…

A: Journal entry:The monetary transaction of business is recorded in the books of accounts called the…

Q: Bayolet Company incurred P1,600,000 of research and development costs to develop a product for which…

A: The asset in question is Patent which is an intangible asset to the organisation.

Q: On January 2, 2016, Affable Co. incurred legal fees and other costs associated with registration of…

A: The total amount of expense that Affable should report in its 2022 income statement related to the…

Q: 2018 Conceptual Framework

A: As per IFRS 3 and IAS 37, Contingent assets are possible assets that is probable to be recovered on…

Q: Garth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end.…

A: Contingent liabilities are those liabilities whose coming into existence depends on some future…

Q: Baguio Corp. incurred P350,000 of research and development costs to develop a product for whicha…

A: Patent A patent refers to the grant of an exclusive right for any kind of invention, product, or…

Q: Winderl Corporation did not disclose that it was the defendant in a material lawsuit because the…

A: 1) DisagreeAs it violated Fully disclosure principle.

Q: On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to…

A: Calculate the sales price of software:

Q: petty peter pty paid the following legal expenses to attorneys for the 2022 year of assessment: R5…

A: In this problem, we are asked to compute the total legal expense that will be deducted while…

Q: In early January 2019, Sheffield Corporation applied for a trade name, incurring legal costs of…

A: AMORTIZATION It is the expensing of intangible asset over its useful life. Amortization expense per…

Q: Based on the preceding information, what amount of stockholders' equity was reported in the…

A: To determine the stockholders' equity reported in the consolidated balance sheet immediately after…

Q: Davis Research Company engaged in the following 5 transactions during 2019: 1. Purchased a patent…

A: Patent transactions refers to the various types of agreements and contracts that a patent owner…

Q: The Commonwealth of Virginia filed suit in October 2016, against Northern Timber Corporation seeking…

A: Stock: A kind of investment that are made by the investors, in order to get more returns is…

Q: Steel Magnolia Incorporated purchased a trademark 7 years ago for $275,000. Steel Magnolia believed…

A: An impairment loss seems to be the amount whereby an asset's or cash-generating unit's carrying…

Q: Garth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end.…

A: The question is related to Contingent liability. A contingent liability is: (a) a potential…

Q: Shamrock Industries had one patent recorded on its books as of January 1, 2025. This patent had a…

A: Intangible Assets: Intangible assets are long-term assets that have no physical existence. However,…

Q: In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of…

A: Trademark shall be measured at costs that are directly associated with its registration. In other…

Q: On January 30, 2016, a suit was filed against Frazier Corporationunder the Environmental Protection…

Q: Calculate amortization for 2020; carrying amount at December 31, 2020; amortization for 2021; and…

A: Amortization is used to reduce the value of intangible assets. Intangible assets are those which do…

Q: Sheffield Corporation owns a patent that has a carrying amount of $640,000. Sheffield expects future…

A: Impairment loss - when the carrying value of the asset in the books exceeds the recoverable amount…

Q: n early January 2014, Paltel Company applied for a patent, incurring legal costs of $60,000. In…

A: Amortization: A process which involves writing down or reducing the value of intangible assets or…

Q: Prepare journal entries related to the patent for 2021, 2022, and 2023

A: Fundamental accounting records called journal entries are used to record and track financial…

Q: On January 2, 2024, David Corporation purchased a patent for $510,000. The remaining legal life is…

A: Fundamental accounting records called journal entries are used to record and track financial…

Q: Pitt Company is the defendant in a lawsuit filed by Hoffman in 2020 disputing the validity of a…

A: In simple terms contingent liability indicates a potential liability. It may or may not get…

Q: On December 31, 2018, Nolte Co. is in financial difficulty and cannot pay a note due that day. It is…

A: Answer: $300,000 gain Fair value of the equipment= $1,450,000 Carrying value of the equipment=…

Q: Crane Company incurred $840000 of research and development costs in its laboratory to develop a new…

A: Patents: A patent is an intangible asset, as it does not have any physical existence. The patent…

Q: Wilson Corporation is performing the test of impairment of its Technology reporting unit at the end…

A: Impairment in the business is the situation under which carrying value of the asset is less than…

Q: Sweet Company recently was sued by a competitor for patent infringement. Attorneys have determined…

A: As per the Perdunce Concept Sweet company has to create a Liability for Future Damages and Since…

Q: apple Fruit Trading spent P1,440,000 in acquiring a patent on January 3, 2012. Due to the…

A: Patent is a form of intangible asset for the business which needs to be amortised over the useful…

Q: Tang company is the defendant in a lawsuit filed by wong in 2019 disputing the validity of copyright…

A: SOLUTION CONTINGENT LIABILITY IS A LIABILITY OR A POTENTIAL LOSS THAT MAY OCCUR IN FUTURE DEPENDING…

Q: Garth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end.…

A: ASC 450-20-25-2 states the conditions to be met to recognize contingency loss. AS per ASC, Based on…

Q: On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is…

A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization…

Q: Splish Brothers Industries had one patent recorded on its books as of January 1, 2020. This patent…

A: Intangible Assets: Intangible assets are the long-term assets having no physical existence.…

Q: The Commonwealth of Virginia filed suit in October 2022 against Northern Timber Corporation, seeking…

A: Contingent liabilities disclosure in financial statements refers to the detailed presentation and…

Q: In May 2021, Cruiser Company filed suit against Stallman, Inc. seeking P850,000 damages for patent…

A: Contingent assets are those probable assets whose existence would be confirmed through the non-…

Q: . During 2021, Rockon Company, Inc. incurred $240,000 in legal fees in defending a patent against an…

A: If Rockon Company lawyers were successful with the defense of the patent, the legal fees should be…

Q: In November 2019, Manly Ltd, a manufacturer of heating systems, was taken to court by one of its…

A: Manly has prohibited multiple businesses from stocking items from other firms or brands, and the…

Q: Sheridan Corp. incurred $890000 of research and development costs to develop a product for which a…

A: Research and development costs are expensed in the period in which it is incurred. Thus, the…

Question

c)
Compute the 2025 amortization and the 12/31/25 book value, assuming that at the beginning of 2025, Bramble determines that
the trade name will provide no future benefits beyond December 31, 2028.
2025 amortization
12/31/25 book value
eTextbook and Media
+A
$
Save for Later Last saved 12 hours ago.
Attempts: unlimited Submit Answer
* Your answer is incorrect.
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, 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, 2026.
2026 amortization
12/31/26 book value

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction of Amortization

VIEW

Step 2: Computing the amortization expense for Year 2025

VIEW

Step 3: Computation of amortization expense for Year 2026

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Cocoa Corporation is preparing its December 31, 2023 financial statements. On March 1, the company settled a lawsuit for which it had accrued a contingent liability (loss) of $1,600,000. The amount of the settlement was $1,750,000. The financial statements were issued on March 10, 2024. Which of the following is correct regarding the settlement of the lawsuit? Question 9Answer a. The additional loss of $150,000 will be reported in the 2024 financial statements. b. No contingent liability will be reported on the 2023 Balance Sheet since the suit has been settled. c. This is not a recognized subsequent event because this information about the settlement was not known at year-end. Therefore, no adjustment is required. d. Cocoa should make an adjusting entry to adjust the estimated loss to the actual amount. Net income for 2023 will decrease by $150,000 (ignoring taxes).
Cayman Corp. incurred $ 140,000 of basic research and $ 35,000 of development costs to develop a product for which a patent was granted on January 2, 2015. Legal fees and other costs associated with registration of the patent totalled $ 50,000. On March 31, 2020, Cayman paid $ 75,000 for legal fees in a successful defence of the patent. The total amount capitalized for the patent through March 31, 2020 should be $ 265,000. $ 160,000.
In May 2019, Colt Company filed suit against Johnson Company seeking P1,900,000 damages for patent infringement. A court verdict in November 2019 awarded Colt Company P1,500,000 in damages, but Johnson Company's appeal is not expected to be decided before 2020. The legal counsel believed it is probable that Colt Company will be successful against Johnson Company for an estimated amount in the range between P800,000 and P1,100,000, with P1,000,000 considered the most likely amount. What amount should Colt Company record as income from the lawsuit for the December 31, 2019? year ended
DAC, Inc. is being sued by WFT Corp.for $5,000,000. At the end of the year, DAC feels it is probable that it will pay $5,000,000 at some point in the following year. What should DAC and WFT record at the end of the year concerning the lawsuit? Select one: a. DAC does not record any loss; WFT records a $5,000,000 gain. b. Neither company records a loss or gain c. DAC records a $5,000,000 loss; WFT records a $5,000,000 gain d. DAC records a $5,000,000 loss; WFT does not record any gain
Swifty Company incurred $551000 of research and development cost in its laboratory to develop a patent granted on January 1, 2027. On July 31, 2027, Swifty paid $83600 for legal fees in a successful defense of the patent. The total amount debited to Patents through July 31, 2027, is
A lawsuit has been filed against Sunland Company for wrongful termination. Sunland's legal counsel had encouraged the company to settle because it is likely they will lose the case. The amount of the loss is estimated to be between $573000 and $1062000. Legal counsel believes that the case could be settled for $864000. Sunland should report O a contingent liability for $864000. O an estimated liability for $573000. O a contingent loss of $1062000. O no loss or liability until the case is settled. Attempts: 0 of 1 used Submit Answer
On January 4, 2016, Franc Company purchased for $30,000 a patent that had been filed 8 years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2017, the company paid its lawyers $11,000 for successfully defending the patent in a lawsuit how to calculate amotization
On January 1, 2021, a Dune Corporation truck was in an accident with an auto driven by R. Bell. Dune received notice on January 12, 2021, of a lawsuit for $700,000 in damages for personal injuries suffered by Bell. Dune Corporation’s legal counsel believes it is probable that Bell will be awarded an estimated amount in the range between $200,000 and $500,000, Dune’s accounting year ends on December 31, and the 2020 financial statements were issued on March 31, 2021. What amount of provision should Dune accrue on December 31, 2020?
Reeves Company filed suit against Higgins, Incorporated, seeking damages for copyright violations. Higgins' legal counsel believes it is probable that Higgins will settle the lawsuit for an estimated amount in the range of $190,000 to $290,000, with all amounts in the range considered equally likely. How should Higgins report this litigation? Multiple Choice As a liability for $290,000 with disclosure of the range In a disclosure only; no liability is reported As a liability for $240,000 with disclosure of the range As a liability for $190,000 with disclosure of the range
Firoz Corp. obtained a trade name in January 2010, incurring legal costs of SAR15,000. The company amortizes the trade name over 8 years. Firoz, successfully defended its trade name in January 2011, incurring SAR 4,900 in legal fees. At the beginning of 2012, based on new marketing research, Firoz determines that the recoverable amount of the trade name is SAR 12.000. Required: a. Prepare the necessary journal entries on amortization for the years ending December 31, 2010 & 2011.. b. In 2012, will Firoz meet any impairment loss? If yes, prepare journal entry to record the impairment loss and amortization entry on 31st Dec 2012