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 to the patent would be   net income in the Cash Flows from Operating Activities section of the statement of cash flows. 4.  The sale of the patent on January 1, 2017, for $200,000 will be reported on the 2017 statement of cash flows. What is the amount of the gain/(loss) to be reported for the sale of the patent? $fill in the blank 7

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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 to the patent would be   net income in the Cash Flows from Operating Activities section of the statement of cash flows.

4.  The sale of the patent on January 1, 2017, for $200,000 will be reported on the 2017 statement of cash flows.

What is the amount of the gain/(loss) to be reported for the sale of the patent?
$fill in the blank 7  

The gain/(loss) on the sale of the patent would be reported in the statement of cash flows as:
 

The proceeds from the sale of the patent would be reported in the statement of cash flows as:
 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Intangible assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education