Skysong Industries has the following patents on its December 31, 2024, balance sheet.Patent ItemInitial Cost Date AcquiredUseful Life at Date AcquiredPatent A$41,6163/1/2117 yearsPatent B$15,4807/1/2210 yearsPatent C$16,3209/1/234 yearsThe following events occurred during the year ended December 31, 2025.1.Research and development costs of $234,000 were incurred during the year.Patent D was purchased on July 1 for $47,196. This patent has a useful life of 91/2 years.2.3.As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value mayhave occurred at December 31, 2025. The controller for Skysong estimates the expected future cash flows from Patent B willbe as follows.

Answered: Skysong Industries has the following…

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 January 2 of the current year, a company purchased a patent for $35,000 with a useful life of 10 years. Prepare the journal entry to amortize the patent at the end of the first year using the general journal.
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Skysong Industries has the following patents on its December 31, 2024, balance sheet. Patent Item Initial Cost Date Acquired Useful Life at Date Acquired Patent A 3/1/21 17 years $41,616 $15,480 Patent B 7/1/22 10 years Patent C $16,320 9/1/23 4 years The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $234,000 were incurred during the year. 2. Patent D was purchased on July 1 for $47,196. 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, 2025. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows.
G Company purchases a patent for $120000 on Jan 1, 2008. It has estimated useful life is 10 years. Prepare journal entry to record patent expense for the first year

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