On January 1, 2022, Scarlet registered a patent for a total registration and legal cost of P800,000. Scarlet estimates that the patent has a remaining useful life of 25 years. How much will be the carrying amount of the patent in December 31, 2024?

On January 1, 2022, Scarlet registered a patent for a total registration and legal cost of P800,000. Scarlet estimates that the patent has a remaining useful life of 25 years. How much will be the carrying amount of the patent in December 31, 2024?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7MC

See similar textbooks

Similar questions

Jill bought a patent from GIA Company on January 01,2021 for P90,000 with remaining life of 15 years Jill expect that the useful life of the patent is 10 years. How much will be the carrying amount of patent in December 31,2025?
On March 2022, Dynamo Research, Inc. has developed another breakthrough product which entails it to incur research and development cost amounting to 126,000 relating to an invention the patent of which was granted on June 1, 2022. The patent right was granted to the company for 20 years, and its estimated economic life is 10 years. The average patent life for the company is 15 years. The total cost of registering the patent amounted to 54,000. In its December 31, 2022 balance sheet, Dynamo Research should report net patent at A. 171,000 B. 169,500 C. 50,850 D. 51,300
On January 1, 2020, Purple Inc. purchased a patent for $33, 300. Legal fees paid in this purchase amounted to $1,700. The legal remaining life of the patent is 14 years, but Purple believes it will only help increase sales for the next 10 years. On January 1, 2023, Purple was sued for patent infringement and had to spend $4,900 of legal fees in the successful defense of this patent. What is the book value of this patent on December 31, 2023? Select one: a. $24,500 b. $21,000 c. $ 25,200 d. $30, 240 e. $19,600
Blue Incorotation has a patent that will expire at the end of 2025. They spent $100,000 to successfully prosecute an infringement suit on July 1, 2018. The carrying value of this patent before the litigation is $300,000. Write journal entries to record for these activities.
Taylor Swift Corporation purchases a patent from Salmon Company on January 1, 2025, for $54,000. The patent has a remaining legal life of 16 years. Taylor Swift estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Taylor Swift's journal entries to record the purchase of the patent and 2025 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Patents cash (To record purchase of patents) Amortization Expense Patents (To record amortization of patents) Debit 24,000 8400 Credit 24,000 24,000
Good night PREGUNTA
On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been filed eight years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2022, the company paid its lawyer P10,000 for successfully defending the patent in a lawsuit. Required Prepare all the journal entries associated with the patent in 2021 and 2022. Note: Show the solution or formula of every problem.
Ayayai Corporation purchases a patent from Blossom Company on January 1, 2025, for $63,000. The patent has a remaining legal life of 14 years. Ayayai estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Ayayai's journal entries to record the purchase of the patent and 2025 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of patents) (To record amortization of patents) Debit Credit
On January 1, 2020, Blessed Company purchased a Patent for P280,000. The asset has a legal life of 10 years but due to rapidly changing technology, Blessed estimates a useful life of only 7 years. On January 1, 2022, Blessed is uncertain that the process can actually be made economically feasible, and decides to write down the patent. The future cash inflows expected from the patent will be P40,000 per year for the remaining life of the patent. The present value of these cash flows, discounted at 12% market interest rate, is P144,200. The fair value less cost to sell is P130,000.
On September 1, 2019, Jordan, Inc. acquired a patent for $600,000. The patent has 16 years remaining in its legal life. However, Jordan, Inc. expects the patent's technology to have a useful life of 8 years. Prepare the journal entries to record the acquisition of the patent and the amortization expense for 2019. Date Account Debit Credit
Remington Corporation purchases a patent from Durler Company on January 1, 2020, for $84,000. The patent has a remaining legal of 16 years. Remington feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Remington's books is $67,200. In January, Remington spends $20,000 successfully defending a patent suit. Remington still feels the patent will be useful until the end of 2029. Prepare Remington's journal entries to record the amortization for 2020 and 2022.
On January 4, 2021, the Franc Company purchased for P27,000 a patent that had been filed eight years earlier. The patent covers a manufacturing process that the company plans to use for 15 years. On January 3, 2022, the company paid its lawyer P10,000 for successfully defending the patent in a lawsuit. Required Prepare all the journal entries associated with the patent in 2021 and 2022.