Safehouse Company was granted a patent on a product on January 1, 2010 with a 20-year useful life. To protect the patent, the entity purchased on January 1, 2020 for P4,500,000 a patent on a competing product which was originally issued on January 1, 2015. Because of the unique plant, the entity does not feel the competing patent can be used in producing a product. What is the amortization of the competing patent for 2020?

Safehouse Company was granted a patent on a product on January 1, 2010 with a 20-year useful life. To protect the patent, the entity purchased on January 1, 2020 for P4,500,000 a patent on a competing product which was originally issued on January 1, 2015. Because of the unique plant, the entity does not feel the competing patent can be used in producing a product. What is the amortization of the competing patent for 2020?

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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2. Tartabull bought a franchise from Alexander Co. on January 1, 2019, for $900,000. The carrying amount of the franchise on Alexander's books on January 1, 2019, was $600,000. The franchise agreement had an estimated useful life of 20 years. Because Tartabull must enter a competitive bidding at the end of 2028, it is unlikely that the franchise will be retained beyond 2028. What amount should be amortized for the year ended December 31, 2020? The amount to be amortized SA $ 701250
Corporation was granted a patent on a product on January 1, 2004. To protect its patent. the corporation purchased on January 1, 2015 a patent on a competing product which was originally issued on January 10, 2011. The cost of the competing patent should be: a. amortized over a maximum period of 20 years. b. amortized over a maximum period of 16 years. c. amortized over a maximum period of 9 years. d. expensed in 2015 Explain each choices. Why is it not the answer or why it is the answer.
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Sandhill Inc. purchased a patent on January 1, 2023 for $500000. Sandhill did not record amortization expense on the patent for 2023 and 2024. At the purchase date, the expected useful life of the patent was 10 years. At December 31, 2025, what should be recorded as the amortization expense? $0 because the value of the patent has not decreased $100000 O $50000 O $150000
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How much is the amortization expense for the 2020 income statement assuming the defense was unsuccessful?
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