On January 3, 2018, Tracer Incorporated purchased a patent for $450,000 to manufacture a new type of chair. The patent has a remaining legal life of twelve years. Tracer plans to manufacture the chair for eight years and then sell the patent for $50,000. The company amortizes intangible assets using the straight-line method. On December 29, 2020, Tracer decides to sell the patent for $325,000. Assuming the company has a December 31 year-end, what is the gain or loss recorded on the sale of the patent?

Q: Hull Inc. purchased a patent on September 1, 2020 for $ 65,000. At the time of purchase, Hull…

A: Patents are the intangible nature of assets which plays a vital role to build business. They are…

Q: • A trademark for P2,000,000. The trademark has 8 years remaining in its legal life. It is anticipa…

A: The answer is stated below:

Q: How much is the amortization expense for the year 2018? 2. What is the patent carrying value at…

A: Amortization of Patent Right

Q: Pina Colada Corporation purchased a patent from MaFee Corp. on January 1, 2023, for $85,950. The…

A: The formula used to calculate the ammortization expense is as follows:

Q: Credit Corp Ltd. purchases a building on July 1, 2019, for $500,000. The building is expected to…

A: The activities relating to the building from July 1,2019 to june 30,2023 fallow below statement:…

Q: DMH Industries Limited purchased a strip mine for cash on April 1, 2023 at a cost of $5,787,000. DMH…

A: Depreciation is referred to a method of expensing the cost of a capital asset over its useful life.…

Q: In January 2024, a company purchased a patent at a cost of $204,000. Legal and filing fees of…

A: Cost of patent = $204,000 Legal and filing fees = $61,000 Estimated useful life = 10 years The…

Q: what is the carrying value of the intangible assts at December 31, 2020?

A: Carrying Value of intangible assets is shown in the balance sheet part where  Calculation of the…

Q: On January 1, 2022, Nader Corp. purchased timberlands for $1,000,000 cash.  Under the terms of the…

A: A legal obligation that is associated with the retirement of a tangible, long-lived asset is…

Q: During 2017, Summer Company spent P500,000 for the research and development of its patent. On…

A: Patent is an intangible fixed asset.  It is amortised every year as…

Q: Ltd. purchased a patent for $450,000 on September 1, 2020. It had a useful life of 10 years. On…

A: Answer : Particular   Amount $ Patent cost   $450,000 Less : Amortization expenses for 2020…

Q: Ice Giant Company purchased a patent on January 1, 2015 for P6,000,000. The original useful life was…

A: Depreciation , amortization , depletion all means the fall in value of assets due to one reason or…

Q: In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that…

A: Amortization expense: A charge created on intangible asset for its use over the life of asset. It is…

Q: the unamortized portion of the patent on December 31, 2020, before adjustment for amortization in…

A: Amortization expense is quite similar to depreciation expense, however, depreciation takes place on…

Q: Hello Corporation purchased a patent for $90,000 on September 1, 2020. It had a useful life of 10…

A: Answer :ParticularAmount $Patent cost$90,000Less : Amortization expenses for…

Q: Alcide Mining Company purchased land on February 1, 2020, at a cost of $1,190,000. It estimated that…

A: a. Compute the per unit material cost.

Q: Monty Company purchases an oil tanker depot on January 1, 2020, at a cost of $ 552,300. Monty…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Blue Inc. acquired some manufacturing equipment in January 2018 for $400,000 and depreciated it…

A: Depreciation is the non-cash expense which is to be reported in the books of an entity in order to…

Q: January 1, 2020, Caleb Co acquired the following intangible assets:        A trademark for…

A: An impairment loss is the carrying amount of an asset that is in excess of its recoverable amount.…

Q: A company acquired patent right on July 1, 2018 for P2,000,000.  The asset has a legal life of 15…

A: A company acquired patent right on July 1, 2018, for P2,000,000.  The asset has a legal life of 15…

Q: Ayayai Corporation purchases a patent from Blossom Company on January 1, 2025, for $63,000. The…

A: As per IFRS / IAS 38 Intangible assets, An intangible assets is an non monetary asset which doesn't…

Q: On December 31, 2020, Zari Company acquired the following intangible assets: •     A trademark for…

A: Impairment loss = Carrying amount of the asset - Recoverable amount   Calculation of Recoverable…

Q: On January 1, 2020, Ella Company acquired the following intangible assets: • A trademark for…

A: Intangible Asset are those assets, which cannot be touch or we can say that it has a lack if…

Q: On January, 2023, Big Company purchased a mineral mine for P2,640,000 with removable ore estimated…

A: Depletion expenses: Depletion expenses is the reduction in the profit due to the use of natural…

Q: Brazen Company purchased a patent on January 1, 2015 for P6,000,000. The original life of the…

A: Intangible assets with a limited useful life must be amortized over the asset's lifetime. Intangible…

Q: In January 2021, Blosso

A: A patent is an exclusive right granted for an invention, which is a product or a process that…

Q: On January 1, 2022, Blessed is uncertain that the process can actually be made economically…

A: Depreciation is calculated on the basis of the entity's estimates of useful life and legal life is…

Q: Culver Products Ltd. purchased a patent on January 1, 2020, for $840,000. At the time of the…

A: Intangible assets are non-physical assets that have no inherent value and cannot be touched or seen.…

Q: Remington Corporation purchases a patent from Durler Company on January 1, 2020, for $84,000. The…

A: Journal Entry:   It is a systematic record of a financial transaction recorded in chronological…

Q: Dazzle Corporation purchased a patent for P7,140,000 on January 2014. The patent is being amortized…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Taylor Swift Corporation purchases a patent from Salmon Company on January 1, 2025, for $54,000. The…

A: Amortization Expense is an expense incurred to record the use of the intangible assets in the…

Q: Larkspur Limited purchased a patent for $86,400 on June 1, 2022. Larkspur has a calendar fiscal year…

A: Intangible asset is an identifiable asset without physical substance.Measurement of Intangible…

Q: On January 1, 2020, Brown Mining Enterprises purchased an existing coalmine. Brown expects to…

A: Assets Retirement Obligation This term which was used for the large corporate company which can be…

Q: On January 1, 2021, Tabitha Designs purchased a patent for $294,000 giving it exclusive rights to…

A: The answer is as fallows

Q: A patent was acquired by Renfro Corporation on January 1, 2014, at a cost of $90,000. The useful…

A: (a) Amortisation expense for the year 2014 Acquisition cost of patent = $90,000 Useful life of the…