Problem 32-15 (AICPA Adapted) Brazen Company purchased a patent on January 1, 2015 for P6.000,000. The original life of the patent was estiated to be l15 years. However, in December 2020, the controller received information proving conclusively that the product protected by the patent Would be obsolete within four years. The entity decided to write off the unamortized portion of the patent cost over five years beginning in 2020. What is the patent amortization for 2020? 1,200,000 a. b. 1,000,000 800,000 400,000 C. d.

Problem 32-15 (AICPA Adapted) Brazen Company purchased a patent on January 1, 2015 for P6.000,000. The original life of the patent was estiated to be l15 years. However, in December 2020, the controller received information proving conclusively that the product protected by the patent Would be obsolete within four years. The entity decided to write off the unamortized portion of the patent cost over five years beginning in 2020. What is the patent amortization for 2020? 1,200,000 a. b. 1,000,000 800,000 400,000 C. d.

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

9
Culver Products Ltd. purchased a patent on January 1, 2020, for $840,000. At the time of the purchase, the patent had a remaining legal life of 15 years. In January, 2023, Culver spent $372,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 9 years. Culver's year-end was December 31. Prepare the entries on the books of Culver Ltd. to record (a) the purchase of the patent, (b) amortization for the first year (2020), (c) the defense of the patent, and (d) amortization for 2023. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries.) No. Account Titles and Explanation (a) (b) (c) (d) Debit Credit
On Jan 1, 20X1, ABC Corp purchased a patent for P90,000. At the time of purchase the patent was valid for 15 years, however the patent's useful life was estimated to be only ten years due to the competitive nature of the product. How much is the amortization of patent at Dec 31, 20X1?
Dazzle Corporation purchased a patent for P7,140,000 on January 2014. The patent is being amortized over the remaining legal life of 15 years expiring on January 2029. During 2017, Dazzle Corporation determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. Using the same information on number (33), what amount should be charged to patent amortization expenses for the year ended December 31, 2017, assuming there is no change in the patent's useful life? OP816,000 O P476,000 O None of the above OP571.200 OP4,896,000
Show the solution in good accounting form
Larkspur Limited purchased a patent for $86,400 on June 1, 2022. Larkspur has a calendar fiscal year end. Straight-line amortization is used for the patent, based on a five-year useful life, although the remaining legal life was 10 years. On May 31, 2024, Larkspur paid $28,800 in legal fees to successfully defend this patent in court and now wants to revise the estimate of the patent's remaining useful life to 8 years, which is the same as its remaining legal life. (a) (b) (c) (d) Record any necessary amortization prior to the change in the useful life of the patent. (Credit account titles are automatically indented when the 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 debit entry before credit entry)
41 Reported in the ledger of Mayumi Company On December 31, 2017, is a Patent account with a balance of P120,000, and accumulated amortization of P 60,000. The Patent is being amortized for its useful life of eight years. On July 1, 2018, Mayumi spent P 30,000 to defend the patent against an infringement suit. On January 1, 2019, with the rapid change in technology, the company determined that the patent will be of no value to the company and that a loss on patent obsolescence has to be recognized.How much is the loss on patent obsolescence?
R Company registered a patent on January 1, 2015. P Company purchased the patent from R Company for $450,000 on January 1, 2020, and began to amortize the patent over its remaining legal life. In early 2021, P Company determined that the patent's economic benefits would last only until the end of 2025. What amount should P Company record for patent amortization in 2021? $30,000 $70,000 $90,000 $84,000
15. On January 1, 2022, a company leased a land and building from an unrelated lessor for a 10- year term. The lease had a renewal option for an additional 5 years, but the entity has not reached a decision with regard to the renewal option. In early 2020, the entity completed three improvements to the property: Improvement 1 P 940,000 Improvement 2 1,500,000 360,000 Improvement 3 10 years 8 years 12 years What amount of depreciation of leasehold improvements will be reported in 2022? a. P199,228 b. P280,000 c. P311,500 d. P317,500
6. Joel Company
Danzer
Y3