Presented below is information related to copyrights owned by Carla Vista Company at December 31, 2020. Cost $8,640,000 Carrying amount 4,460,000 Expected future net cash flows 3,940,000 Fair value 3,310,000 Assume that Carla Vista Company will continue to use this copyright in the future. As of December 31, 2020, the copyri, estimated to have a remaining useful life of 10 years. Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not use ac amortization accounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit ac are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Prepare the journal entry to record amortization expense for 2021 related to the copyrights. (If no entry is required, sel Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is ent not indent manually.) Assount Title s and Explan ation Dobit Crodit

Presented below is information related to copyrights owned by Carla Vista Company at December 31, 2020. Cost $8,640,000 Carrying amount 4,460,000 Expected future net cash flows 3,940,000 Fair value 3,310,000 Assume that Carla Vista Company will continue to use this copyright in the future. As of December 31, 2020, the copyri, estimated to have a remaining useful life of 10 years. Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not use ac amortization accounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit ac are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Prepare the journal entry to record amortization expense for 2021 related to the copyrights. (If no entry is required, sel Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is ent not indent manually.) Assount Title s and Explan ation Dobit Crodit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On April 1, 2020, the Tech Corp. acquired a patent for $162,000. This patent has an estimated useful life of 12 years with an estimated residual value of $18,000. Required: a. In determining the 12-year useful life of this patent, what two lives of the patent did Tech consider? b. Which of these two lives did Tech use as the patent's useful life or is that determinable? c. Make the December 31, 2020, entry for Tech to record the 2020 amortization of this patent in the manner that Tech would have to use in this class. d. What will be the book value of this patent on the December 31, 2023, balance sheet? 14 010 120m 20 1
Novaklimited has a trademark with a carrying amount of $84,000, and expected useful life of 15 years. As part on December 31, 2020, due to a change in customer tastes, Novak gathered the following data about the trademark for the purposes of an impairment test: fair value $44,400: fair value less costs to sell $41.100; value in use $95,700; and undiscounted future cash flows $129,000. Assume that Novak is reporting under IFRS. Determine if the trademark is impaired on December 31, 2020. Trademark is
Carla Vista Company purchases a patent for $147,200 cash on January 2, 2021. Its legal life is 20 years and its estimated useful life is 8 years. Record the purchase of the patent on January 2, 2021.
Marigold Company purchases a patent for $504,000 on January 2, 2022. Its estimated useful life is 18 years. Prepare the journal entry to record amortization expense for the first year.
B. January 17, 2020, Roddick Company incurred $172,000 in successfully defending one of its patents in an infringement suit. The patent expires during December 2023. Required: Prepare the journal entry needed at the date of the transaction and on December 31, 2020 to record any resultant amortization.
Makati Inc. acquires a building on February 1, 2020 at a cost of 5,500,000. The building has an estimated useful life of 40 years and an estimated salvage value of 500,000. Question 1. What is the journal entry to record the purchase of building? Question 2. What is the adjusting entry on December 31 assuming the company prepares it's financial statements on this date . Question 3. What is the amount of expense to be recognized for 2020? Question 4. What is the book value of the building as of December 31,2020? Please answer it completely. Don't answer if you don't answer it completely. Thanks.
Skysong Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A 3/1/21 17 years $41,616 $15,480 Patent B 7/1/22 10 years Patent C $16,320 9/1/23 4 years The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $234,000 were incurred during the year. 2. Patent D was purchased on July 1 for $47,196. This patent has a useful life of 91/2 years. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2025. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows.
Presented below is information related to copyrights owned by Carla Vista Company at December 31, 2020. Cost $8,630,000 Carrying amount 4,480,000 Expected future net cash flows 4,140,000 Fair value 3,330,000 Assume that Carla Vista Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. The fair value of the copyright at December 31, 2021, is $3,500,000. Prepare the journal entry necessary to record the increase in fair value.
Presented below is information related to copyrights owned by Carla Vista Company at December 31, 2020. Cost $8,630,000 Carrying amount 4,480,000 Expected future net cash flows 4,140,000 Fair value 3,330,000 Assume that Carla Vista Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. Prepare the journal entry to record amortization expense for 2021 related to the copyrights.
Prepare journal entries in the books of Legrand Company for the year 2020, including any necessary year-end adjustments.
Skysong Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $41,616 3/1/21 17 years Patent B $15,480 7/1/22 10 years Patent C $16,320 9/1/23 4 years The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $234,000 were incurred during the year. Patent D was purchased on July 1 for $47,196. This patent has a useful life of 91/2 years. 2. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2025. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows.
Y3