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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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?
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…
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
Owe
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.
Which of the following statements concerning intangibles is true? a. a copyright should be considered an intangible with an indefinite lifeb. organization costs must be expensed as incurredc. a patent should be amortized over the shorter of the inventor’s life or its economic lifed. the registration of a trademark or tradename lasts for 20 years and is nonrenewable
The intangible assets section of Novak Corporation's balance sheet at December 31, 2025, is presented here. Patents ($78,000 cost less $7,800 amortization) Copyrights ($46,800 cost less $32,760 amortization) Total $70,200 14,040 $84,240 The patent was acquired in January 2025 and has a useful life of 10 years. The copyright was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2026. Jan. 2 Jan.-June Sept. 1 Oct. 1 Paid $60,840 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $299,000 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $26,400. Paid $52,000 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for…