The intangible assets and goodwill reported by Wildhorse Company at December 31, 2020, follow:Patent #1$ 112,500Less: Accumulated amortization22,5002$90,000Copyright #148,600Less: Accumulated amortization29,16019,440Goodwill221,000Total$ 330,440Patent #1 was acquired in January 2019 and has an estimated useful life of 10 years. Copyright #1 was acquired in January 2015 andalso has an estimated useful life of 10 years. The following cash transactions may have affected intangible assets and goodwill duringthe year 2021:Jan. 2Paid $32,800 of legal costs to successfully defend Patent #1 against infringement by another company.Developed a new product, incurring $186,000 in research costs and $58,080 in development costs, which were paidin cash. The development costs were directly related to Patent #2, which was granted for the product on July 1. ItsJune 30estimated useful life is equal to its legal life of 20 years.Sept. 1Paid $12,600 to an Olympic athlete to appear in commercials advertising the company's products. The commercialswill air in September.Oct. 1Acquired a second copyright for $19,440 cash. Copyright #2 has an estimated useful life of six years. Record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Ifno entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented inthe problem.)DateAccount Titles and ExplanationDebit(To record legal costs.)(To record research costs.)(To record development costs.)( To record advertising.)(To record copyright.)eTextbook and MediaList of AccountsII II II II DI

Recording of any transactions is based on dual accounting system. Recording of transactions followed…

The intangible assets and goodwill reported by Wildhorse Company at December 31, 2020, follow: Patent #1 $ 112,500 Less: Accumulated amortization 22,500 $ 90,000 Copyright #1 48,600 Less: Accumulated amortization 29,160 19,440 Goodwill 221,000 Total $ 330,440

The intangible assets and goodwill reported by Wildhorse Company at December 31, 2020, follow: Patent #1 $ 112,500 Less: Accumulated amortization 22,500 $ 90,000 Copyright #1 48,600 Less: Accumulated amortization 29,160 19,440 Goodwill 221,000 Total $ 330,440

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

If someone could please help fill this out it be much appreciated
These are selected 2027 transactions for Pronghorn Corporation: Jan. 1 Mar. 1 Sept. 1 Purchased a copyright for $160,800. The copyright has a useful life of 6 years and a remaining legal life of 35 years. Purchased a patent with an estimated useful life of 5 years and a legal life of 20 years for $90,000. Purchased a small company and recorded goodwill of $150.200. Its useful life is indefinite. Indicate the amount of amortization expense on December 31, 2027. for Pronghorn Corporation. Amortization expense S
Case 9. The assets and liabilities of a manufacturing plant of Joy Company form a disposal group. The criteria forclassification are met on January 1, 2020, As of January 1, 2020 its carrying amount of the assets and liabilities of theplant are as follows:Goodwill allocated 200,000,000Land and building 150,000,000Plant, machinery and equipment 491,700,000Investment property 130,000,000Receivables and financial assets 75,000,000Inventories, net of writedown 110,000,000Borrowings (300,000,000)Carrying Value 856,700,000The investment property has been reported at its current fair value at the reporting date December 31, 2020. Thereceivables and financial assets were properly valued at 75,000,000. The inventories were properly valued at net realizablevalue at the reporting date.Negotiations to dispose of the manufacturing plant to JIT company is in the advanced stage and the buyer is willing to paya price of 603,400,000 to buy the plant as a whole. Cost to sell is estimated at 1,700,000.9.…
Required information [The following information applies to the questions displayed below.] Hero Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $86,000 451,000 227,900 205,000 Accumulated Depreciation Book Value $86,000 288,640 179,700 123,000 • Hero purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual Land Building Equipment Patent 0 value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $11,000. HERO SANDWICH SHOP December 31, 2024 $(162,360) (48,200) (82,000) • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years). 3. Calculate the book value for each of the…
! Required information [The following information applies to the questions displayed below.] Stevens Sandwich Shop had the following long-term asset balances as of January 1, 2024: Land Building Equipment Patent Cost $82,000 Accumulated Depreciation Book Value 0 $82,000 447,000 226,300 185,000 $(160,920) 286,080 (47,400) 178,900 (74,000) 111,000 • Stevens purchased all the assets at the beginning of 2022. • The building is depreciated over a 10-year service life using the double-declining-balance method and estimating no residual value. • The equipment is depreciated over a 9-year service life using the straight-line method with an estimated residual value of $13,000. • The patent is estimated to have a five-year useful life with no residual value and is amortized using the straight-line method. • Depreciation and amortization have been recorded for 2022 and 2023 (first two years).
At December 31, 2023, Sandhill Corp's general ledger includes the following account balances: Copyrights $52500 Deposits with advertising agency (will be used to promote goodwill) 43000 Discount on bonds payable 74000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 589500 Trademarks 106000 In the preparation of Sandhill's balance sheet as of December 31, 2023, what should be reported as total intangible assets? O $158500 O $748000 $791000 O $822000
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.
Intangibles: Balance Sheet Presentation and Income Statement Effects Clinton Company has provided information on Intangible assets as follows: 1. A patent was purchased from Lou Company for $1,230,000 on January 1, 2018. Clinton estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of 5850,000 when Lou sold it to Clinton. 2. During 2019, a franchise was purchased from Rink Company for $550,000, In addition, 6% of revenue from the franchise must be pald to Rink. Revenue from the franchise for 2019 was $2,500,000. Clinton estimates the useful life of the franchise to be 5 years and takes a full vear's amortization in the year of purchase. 3. Clinton incurred RAD costs in 2019 as follows: Materials and equipment $147,000 Personnel 178,000 Indirect costs 69,000 $394,000 Clinton estimates that these costs will be recouped by December 31, 2020. 4. On January 1, 2019, Clinton estimates, based on new events,…
The fair value of a patent on 01/01/2020 was RO. 5200. The patent was purchased on 01/01/2015 for RO.10,000 with an estimated useful life of 10 years with no salvage value. If the company follows straight-line amortization methods on all its intangible assets, how much amount to be charged to asset account (Patent account)a.A credit of RO. 5000b.A debit of RO. 200c.A debit of RO. 5000d.A credit of RO. 200
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 $41,616 3/1/21 17 years Patent B $15,480 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. 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 may have occurred at December 31, 2025. The controller for Skysong estimates the expected future cash flows from Patent B will be as follows.
Do not give answer in image
Kk152.