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Sunland Corp. obtained a tradename in January 2024, incurring legal costs of $69,840. The company amortizes the tradename over 8 years using the straight-line method. Sunland successfully defended its tradename in January 2025, incurring $19,012 in legal fees. At the beginning of 2026, based on new marketing research, Sunland determines that the fair value of the tradename is $58,200. Estimated future net cash flows from the tradename are $62,080 on January 4, 2026. Prepare the necessary journal entries for the years ending December 31, 2024, 2025, and 2026. (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 all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit

Sunland Corp. obtained a tradename in January 2024, incurring legal costs of $69,840. The company amortizes the tradename over 8 years using the straight-line method. Sunland successfully defended its tradename in January 2025, incurring $19,012 in legal fees. At the beginning of 2026, based on new marketing research, Sunland determines that the fair value of the tradename is $58,200. Estimated future net cash flows from the tradename are $62,080 on January 4, 2026. Prepare the necessary journal entries for the years ending December 31, 2024, 2025, and 2026. (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 all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING
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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Sunland Corp. obtained a tradename in January 2024, incurring legal costs of $69,840. The company amortizes the tradename over 8 years using the straight-line method. Sunland successfully defended its tradename in January 2025, incurring $19,012 in legal fees. At the beginning of 2026, based on new marketing research, Sunland determines that the fair value of the tradename is $58,200. Estimated future net cash flows from the tradename are $62,080 on January 4, 2026. Prepare the necessary journal entries for the years ending December 31, 2024, 2025, and 2026. (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 all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date > Account Titles and Explanation Debit Credit SUPPORT
Transcribed Image Text:Sunland Corp. obtained a tradename in January 2024, incurring legal costs of $69,840. The company amortizes the tradename over 8 years using the straight-line method. Sunland successfully defended its tradename in January 2025, incurring $19,012 in legal fees. At the beginning of 2026, based on new marketing research, Sunland determines that the fair value of the tradename is $58,200. Estimated future net cash flows from the tradename are $62,080 on January 4, 2026. Prepare the necessary journal entries for the years ending December 31, 2024, 2025, and 2026. (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 all debit entries before credit entries. Record entries in the order displayed in the problem statement.) Date > Account Titles and Explanation Debit Credit SUPPORT
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