Question 21-7-2015Purchased a patent for $30,000. The patent is estimated to have| 8 years useful life and $2,000 residual value.The company determined that the recoverable amount of the|patent is 18,500.The company determined that the recoverable amount of thepatent is 11,000.31-12-201731-12-2020The company closes its books annually on December 31 and uses the straight linemethod for amortization.Instructions1) Prepare the amortization schedule over the asset's life based on basicestimations at 1-7-2015.2) Journalize the required entry related to impairment at 31-12-20173) Prepare the amortization schedule over the remaining asset's life4) Journalize the required entry related to impairment at 31-12-20205) Prepare the amortization schedule over the remaining asset's life

A. The amortization schedule for patent based on estimations at 1-7-2015 is, Given:Patent cost =…

Answered: Question 2 1-7-2015 Purchased a patent…

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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Fill the blanks XYZ company purchased a new machine on July 1, 2021, at a cost of €50,000. The company estimated that the machine will have a residual value of €10,000. The machine is expected to be used for 10,000 working hours during its 5‐year life. After 6 months, it has been used for 2500 hours and company decides to sell it for 55000. No depreciation has been recorded for the machine. If the company used double declining balance method instead of units-of-activity, the net book value would have been ...blank... and the ...blank... on disposal would have been ...blank...
Please solved the subparts Thank you Tableleaf Inc. purchased a patent a number of years ago. The patent is being amortized on a straight-line basis over its estimated useful life. The company’s comparative balance sheets as of December 31, 2017 and 2016, included the following line item: 12/31/17 12/31/16 Patent, less accumulated amortization of$119,000 (2017) and $102,000 (2016) $170,000 $187,000 Required: 1. How much amortization expense was recorded during 2017?$fill in the blank 1 2. What was the patent's acquisition cost?$fill in the blank 2 In what year was it acquired?2011 What is its estimated useful life?fill in the blank 4 years How was the acquisition of the patent reported on that year's statement of cash flows? 3. Assume that Tableleaf uses the indirect method to prepare its statement of cash flows. How is the amortization of the patent reported annually on the statement of cash flows? Assuming the indirect method is used, the amortization expense relating…
0n 0et 1, 2018,Net Solutons purchased a piece of high-tech equipment for $384,000, which is expected to hare a fou-year useful life and a residual valve of $24,000. The compamy uses straigh-line depreciaton and has a December 31 fiscal year emd.0n July 1, 2019,$4200 was paid for normal repairs miecesary to keep the eqwipment in god working order. 0n or. 10, 2020, $22,000 cash was paid for a newy componeant expected to mcrease the equipmient's prodmctyvity by 10% a year. 1) Calculate the amnual deprecation expense, Journalize the yearly depreciation erpense at Dec, 31 2019. 2) Journalize the transaction on 0ct. 1, 2018, Jul.1.2019 and Nov. 10.2020.
On 1 July 2022, your company acquired a machine for $103,000 on credit and decided to depreciate it for 25 years with no residual amount. The credit was taken from a local bank that charges 4.2% per annum with payments every year on 30 June. Assume that the fair values of this asset were: Date Fair Value 1/7/2023 $105,000 30/11/2023 $98,000 30/6/2024 $80,000 a. Using the cost model, prepare the relevant journal entries from the date of acquisition to 30 June 2023 b.Using the revaluation model, prepare the relevant journal entries from the date of acquisition to 30 June 2023.
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QUESTION 8 Co. A purchased a patent on 31 December 20X1 for $450,000. Co. A expects to use the patent for 5 years, after which it will be valueless. According to IAS 38 Intangible assets, compute the annual amortisation charge. What is the journal entry required to record the amortisation in the accounts for the year ended 31 December 20X2?
Computing Subsequent Carrying Amount of Patents In January of Year 1, Ford Co. purchased a patent from a research institution for $325,000. The patent was estimated to have a useful life of 15 years. In December of Year 2, Ford Co. defended the patent in legal proceedings and successfully retained rights of ownership of the patent. The estimated life of the patent did not change from its original estimate Legal expenses on December 31 were $26,000. Determine the (1) amortization for Year 2, and (2) carrying value of the patent on December 31 of Year 2. Note: Round your final answers to the nearest dollar. 1. Amortization for Year 2 1 2. Carrying value on Dec 31, Year 25 25.214 x 302.572 x
Problem 2 James Co. purchased equipment on January 1, 2017 for $1,200,000 cash. The company uses the revaluation model for its equipment. The useful life is 15 years and the residual value is $100,000. On December 31, 2018 and December 31, 2020, the fair value of the equipment was estimated at $1,300,000 and $850,000, respectively. The company uses straight line method of depreciation. Required- Prepare all the journal entries from January 1, 2017, to December 31, 2020 for equipment.

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