Remington corporation purchases a.. accuting questions Remington Corporation purchases a patent from Durler Company onJanuary 1, 2014, for $72,000. The patent has a remaining legal of 16 years.Remington feels the patent will be useful for 10 years. Assume that atJanuary 1, 2016, the carrying amount of the patent on Remington's booksis $64,800. In January, Remington spends $20,000 successfully defendinga patent suit. Remington still feels the patent will be useful until the endof 2013.Prepare Remington's journal entries to record the amortization for 2014and 2016.

Step 1: Define PatentA patent can be defined as an intellectual property that gives its owner the…

Answered: Remington Corporation purchases a…

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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Taylor Swift Corporation purchases a patent from Salmon Company on January 1, 2017, for $54,000. The patent has a remaining legal life of 16 years. Taylor Swift feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Taylor Swift’s books is $43,200. In January, Taylor Swift spends $24,000 successfully defending a patent suit. Taylor Swift still feels the patent will be useful until the end of 2026. Prepare the journal entries to record the $24,000 expenditure and 2019 amortization
Oriole Corporation purchases a patent from Pharoah Company on January 1, 2020, for $73,920. The patent has a remaining legal of 16 years. Oriole feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Oriole's books is $59,136. In January, Oriole spends $17,600 successfully defending a patent suit. Oriole still feels the patent will be useful until the end of 2029. Prepare Oriole's journal entries to record the amortization for 2020 and 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2020 2022
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Pina Corporation purchases a patent from Blossom Company on January 1, 2020, for $59,000. The patent has a remaining legal life of 16 years. Pina feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Pina's books is $47,200. In January, Pina spends $24,000 successfully defending a patent suit. Pina still feels the patent will be useful until the end of 2029. Prepare the journal entries to record the $24,000 expenditure and 2022 amortization. (Credit account titles are automatically indented when 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.) Account Titles and Explanation (To record expenditure of patents) (To record amortization expense) Debit Credit 11
In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that had a remaining legal life of 14 years. Jennifer estimated that the remaining economic life would be seven years. In January 2018, the company incurred $30,000 in legal costs to defend the patent from an infringement. Jennifer's lawyers were successful, and the remaining years of benefit from the patent were estimated to be six years. What is the patent amortization expense for 2018? $9,923 $21,500 $7,615 $16,500
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Pronghorn Corporation purchases a patent from Larkspur Inc. on July 1, 2017, for $267,000. The patent has a remaining legal life of 9 years. Pronghorn estimates the patent will have a useful life of 4 years, based on expected product innovations in the market. Prepare Pronghorn's journal entries to record the purchase of the patent and 2017 amortization. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit Patents Cash (To record purchase of patents) Amortization Expense Patents (To record amortization of patents) 267000 66750 267000 66750
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