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

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answer in text form please (without image), Note: .Every entry should have narration please
On October 12, 2023, Simarov, Inc. purchases a Copyright to a song, written by a person who died on October 12, 1963 for $50,000 cash. Simarov believes they will be able to generate revenue from the Copyright for the remaining useful life. Prepare the journal entry to record the purchase. DR: CR: What is the remaining useful life of the Copyright? How much amortization expense will Simarov record each year? years Prepare the adjusting journal entry to record one year's amortization. DR: CR: What is the Net Book Value of the Copyright on October 1, 2027?
Rover Company purchases copyrights for P200,000 and incurs professional legal fees amounting to P20,000 related to the purchase made. After the purchase, Rover Company incurred operating expenses of P60,000. The estimated economic life is 40 years. What is the initial cost of copyright to be recorded in the books of Rover Company? P200,000 P180,000 P220,000 P280,000
On January 1, 2017, Reno Company purchased a copyright for $1,000,000, having an estimated useful life of 16 years. In January 2021, Reno paid $150,000 for legal fees in a successful defense of the copyright. What should be the amount of copyright amortization expense for the year ended December 31, 2021?
Colgate Co. bought a trademark from Crest Corp. on May 1, 2019 for P300,000. Its unamortized cost on Crest's accounting records was P112,000. Colgate decided to amortize the trademark over its legal life from the date of purchase. In Colgate's December 31, 2019, Financial Position what amount should the trademark be reported?
What is the correct journal entry?
112.
9
These are selected 2027 transactions for Pronghorn Corporation: Jan. 1 Mar. 1 Sept. 1 Purchased a copyright for $160,800. The copyright has a useful life of 6 years and a remaining legal life of 35 years. Purchased a patent with an estimated useful life of 5 years and a legal life of 20 years for $90,000. Purchased a small company and recorded goodwill of $150.200. Its useful life is indefinite. Indicate the amount of amortization expense on December 31, 2027. for Pronghorn Corporation. Amortization expense S
Sage Hill Industries has the following patents on its December 31, 2019, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A $43,860 3/1/16 17 years Patent B $16,800 7/1/17 10 years Patent C $21,600 9/1/18 4 years The following events occurred during the year ended December 31, 2020. 1. Research and development costs of $245,000 were incurred during the year. 2. Patent D was purchased on July 1 for $40,470. 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, 2020. The controller for Sage Hill estimates the expected future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2021 $2,100 2022 2,100 2023 2,100 The proper discount rate to be used for these flows is 8%. (Assume…
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