trademark
Q: Laguna Company acquired three patents in January 2005. The patents have different lives as indicated…
A: The amortization expense is charged on intangible assets on the basis of legal life of the assets.
Q: 5. Barkley Corp. obtained a tradename in January 2024, incurring legal costs of $72,000. The company…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: The following information concerns the intangible assets of Epstein Corporation: a. On June 30,…
A: 1.Adjusting journal entries for amortization expenses on the intangible assets are as follows:
Q: Adam, Inc. purchased equipment in 2021 at a cost of $600,000. Two years later it became apparent to…
A: Impairment loss refers to the reduction in the value of an asset on a company's balance sheet when…
Q: Oriole Corporation purchased Pharoah Company 3 years ago and at that time recorded goodwill of…
A: According to International Accounting Standards (IAS), specifically IAS 36 - "Impairment of…
Q: amount should be reported as goodwill
A: Goodwill should be recognized as an intangible asset if money or money's worth has been paid for it.…
Q: Ford Corporation estimates the fair value of its trademark is estimated to be $560,000. The current…
A: The time period trademark refers to a recognizable insignia, phrase, word, or image that denotes a…
Q: On January 2, 2016, Affable Co. incurred legal fees and other costs associated with registration of…
A: The total amount of expense that Affable should report in its 2022 income statement related to the…
Q: The Siri Company acquired equipment on January 1, 2015 at a cost of P400,000, depreciating it over 8…
A: The question is related to Consolidated Financial Statements and is multiple choice question.…
Q: Sheffield Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of…
A: Impairment of loss: The impairment loss must be recorded so that the asset is written down. There is…
Q: MG Corporation acquired a patent for a new product for $260,000 on 2 January 2013 with a useful life…
A: Solution: Annual amortization expense on Patent = Cost of patent / Estimated useful life = $260,000…
Q: On January 1, 2013, Laity Company purchased a patent with a cost of P5,200,000 and a useful life of…
A: An impairment loss shall be when the carrying amount of the asset exceeds its recoverable amount…
Q: On January 1, 2014, Aim Company showed patent of P1,920,000 with related accumulated amortization of…
A:
Q: Probst Company acquired a trademark several years ago at a cost of $60,000. Probst has never…
A: GAAP stands for Generally Accepted Financial Practices, and it's based in the U.S. IFRS is a set of…
Q: Leon Corp. purchased Spinks Co. 4 years ago and at that time recorded goodwill of €300,000. The…
A: Since the carrying amount more than recoverable amount by $90000 Goodwill is impired by $90000The…
Q: Shamrock Industries had one patent recorded on its books as of January 1, 2025. This patent had a…
A: Intangible Assets: Intangible assets are long-term assets that have no physical existence. However,…
Q: amortization expense in 2024?
A: Amortization expense is the write-off of an intangible asset over its anticipated duration of use,…
Q: n early January 2014, Paltel Company applied for a patent, incurring legal costs of $60,000. In…
A: Amortization: A process which involves writing down or reducing the value of intangible assets or…
Q: Janes Company provided the following information on intangible assets: a. A patent was purchased…
A: Amortization is the process of reducing the value of intangible asset over a specified…
Q: The following information concerns the intangible assets of Baez Corporation: On June 30, 2024, Baez…
A: Journal entry is the first stage of accounting process.Journal entry used to record business…
Q: On January 1, 20X0, Vick Company purchased a trademark for $400,000, which had an estimated useful…
A: Given, Cost of trademark = $400,000, Useful life = 16 years, Legal fee on successfully defending the…
Q: Sunland Co. bought a patent from Carla Vista Corp. on January 1, 2021, for $918000. An independent…
A: Intangible assets: These are long-term assets having no physical existence. However, the benefits…
Q: ABC adheres to IFRS and applies the revaluation model to account for its Patents. Prior to 2009,…
A: This question deals with the revaluation of intangible asset. As per IAS 38 "Intangible asset",…
Q: y Inc. had the following transactions related to intangibles during the year: • On January 1, 2022,…
A: Book value of the franchise include all payments done for acquiring the rights of franchise. That…
Q: On September 30, 2014, Leeds LTD. acquired a patent in conjunction with the purchase of another…
A: 1.
Q: Crane Company incurred $840000 of research and development costs in its laboratory to develop a new…
A: Patents: A patent is an intangible asset, as it does not have any physical existence. The patent…
Q: On September 30, 2019, Leeds LTD. acquired a patent in conjunction with the purchase of another…
A: 1) Calculation of Amortization for the patent for 2019 and 2020: Amortization = ( Total patent…
Q: Janes Company provided the following information on intangible assets: A patent was purchased from…
A: Journal entry: A journal entry serves as documentation of a business's financial activities kept in…
Q: legal life of the patent is 15 years but the useful life is successfully defending the patent in an…
A: If a competing patent is acquired to protect an original patent. The cost of the new patent and the…
Q: On January 1, 2008, Ryan Company purchased a patent for P7,140,000. The patent is being amortized…
A: Patents are intangible assets and these are to be amortised over the life of useful period. They are…
Q: On September 1, 2018. Vernon Corporation acquired Barlow Enterprises for a cash payment of 5820.000.…
A: Answer: Part 1: Part 2: The fair value of the Reporting unit = 720,000. Carrying amount of Borlow =…
Q: efense of the pat colete.
A: A patent is legal right to use the use the intangible asset. The cost of the patent is amortized…
Q: On October 1, 2007, JIMMY Acquired the net assets of NEUTRON which resulted to goodwill. When JIMMY…
A: IFRS 3 It stands for International Financial Reporting Standard 3 which states the…
Q: On June 28, Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The…
A: Calculate the amortization of patent expenses as follows: Patent = (Amount / Life)*(Period/12)…
Q: On September 30, 2016, Leeds LTD. acquired a patent in conjunction with the purchase of another…
A: Purchase price of Patent on September 30,2016 = 60,00,000 Life = 10 years Amortisation in year 2016…
Q: On September 30, 2014, Leeds LTD, acquired a potent in conjunction with the purchase of another…
A: An intangible asset is an asset that is not physical in nature, such as a patent, brand, trademark,…
Q: The following information concerns the intangible assets of Epstein Corporation:a. On June 30, 2021,…
A: a. Goodwill = Acquisition cost - Fair value of net identifiable assets = $2,000,000 - $1,700,000 =…
Q: E10-11 The following are selected transactions of Arseneault Corporation during 2002: Jan. 1 Paid…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period. The…
Q: On Jan 1, 20X1, ABC Corp purchased a patent for P90,000. At the time of purchase the patent was…
A: Expense is the charge against revenue. Depreciation and amortization is recorded as expense in the…
Q: Bramble Corporation purchased Marin Company 3 years ago and at that time recorded goodwill of…
A: Answer: "No Entry Required"
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- 1. On July 1, 2010, Jablonski Products purchased the net assets of Duquesne Industries for $285,000 (cash of $85,000 and a short-term note payable of $200,000). The assets included current assets of $125,000, property, plant, and equipment with a fair value of $250,000 (book value of $300,000), and a trademark valued at $150,000. Jablonski assumed liabilities totaling $200,000. The entry to record the purchase would include: O A) A debit to Goodwill of $40,000 B) A credit to Gain on Purchase of $90,000 O C) A credit to Goodwill of $40,000 D) A debit to Goodwill of $90,000 O E) A credit to Gain on Purchase of $40,000On January 2, 2023, Blossom Corp. bought a trademark from Cullumber Inc. for $117000. An independent research company estimated that the remaining useful life of the trademark was 25 years. At this time, the trademark's net book value in Cullumber's records was $174000. Because the trademark had a demonstrated limited life beyond 25 years, Blossom decided to amortize the trademark over the maximum period, straight-line with no residual. In Blossom's (calendar) 2023 income statement, what amount should be reported as amortization expense for this trademark? O $6492 O $6960 O $4680 O $5850The following five independent questions relate to the GIANTS Co, whose reporting year ends on 12/31. Giants Co developed a trademark internally, incurring the following costs on 1/1/18: Design Registration $282,000 $132,000 $92,000 Research/Development On 1/1/20, Giants Co acquired a trade name for $498,000. At the time of development (1/1/18) and acquisition (1/1/20), Giants Co estimated that the economic life of each asset would be 12 years. On 1/1/24, Giants Co successfully defended the trade name in a legal battle at a cost of $21,700. As a result, the economic life was adjusted to extend through the year 2032. Also on this day, Giants Co has determined that the trademark would have an unlimited capacity to produce cash flows. ** REQUIRED: 1) Determine the following: a) TOTAL amount of amortization expense reported FYE 12/31/23. b) TOTAL amount of amortization expense reported FYE 12/31/24. c) carry value of the Trademark at 12/31/24. d) carry value of the Trade Name at 12/31/24.
- The Siri Company acquired equipment on January 1, 2015 at a cost of P400,000, depreciating it over 8 years with a nil residual value. On January 1, 2018. The Triss Company acquired 100% of Siri and estimated the fair value of the equipment at P230,000 with a remaining life of 5 years. This fair value was not incorporated into Siri’s books and the depreciation expense continued to be calculated by reference to original cost. What adjustments should be made to the depreciation expense for the year and the statement of financial position carrying amount in preparing the consolidated financial statements for the year ended December 31, 2019? DEPRECIATION EXPENSE -decrease by P4,000 ; CARRYING AMOUNT - decreased by P12,000 DEPRECIATION EXPENSE -decreased by P4,000 ; CARRYING AMOUNT - increased by P12,000 DEPRECIATION EXPENSE -increase by P4,000 ; CARRYING AMOUNT - decreased by P12,000 DEPRECIATION EXPENSE…Novaklimited has a trademark with a carrying amount of $84,000, and expected useful life of 15 years. As part on December 31, 2020, due to a change in customer tastes, Novak gathered the following data about the trademark for the purposes of an impairment test: fair value $44,400: fair value less costs to sell $41.100; value in use $95,700; and undiscounted future cash flows $129,000. Assume that Novak is reporting under IFRS. Determine if the trademark is impaired on December 31, 2020. Trademark isSwifty Company incurred $551000 of research and development cost in its laboratory to develop a patent granted on January 1, 2027. On July 31, 2027, Swifty paid $83600 for legal fees in a successful defense of the patent. The total amount debited to Patents through July 31, 2027, is
- R Company registered a patent on January 1, 2015. P Company purchased the patent from R Company for $450,000 on January 1, 2020, and began to amortize the patent over its remaining legal life. In early 2021, P Company determined that the patent's economic benefits would last only until the end of 2025. What amount should P Company record for patent amortization in 2021? $30,000 $70,000 $90,000 $84,000HE Ltd is a company incorporated in SG and prepares its financial accounts based on the Singapore Financial Reporting Standards. It purchased a machine on 1/1/20X1 for $150,000. The machine has a useful economic life of 10 years and zero residual value. On 1/1/20X4, the company revalued the machine to its current fair value of $180,000. Assume that the current gross carrying amount of the machine as at 1st Jan 20X4 by reference to observable market data is $255,000. Illustrate with journal entries to show the revaluation of the machine by restating the gross carrying amount of the machine by reference to observable market data.Sandhill Corporation purchased a patent for $147000 on September 1, 2024. It had a useful life of 10 years. On January 1, 2026, Sandhill spent $41000 to successfully defend the patent in a lawsuit. Sandhill feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense at the company's December 31, 2026 year-end if the straight-line method is used? O $25480. O $33680. O $31720. O $34660.
- Bennet Company purchased a patent from Arnold Company on January 1, 2021 for $450,000. Arnold Company had used the patent for five years prior to selling it to Bennet Company. Assuming Bennet Company plans to use the patent for its full useful life, what amount of amortization expense would Bennet Company record on its 2021 income statement? $22,500 O $30,000 O $25.000 O $37,500 O There is not enough information to answer the question.During 2023, Lowry Company was used by a competitor for P5,000,000 infringement suit of a trademark. Based on the legal counsel’s advice, Lowery accrued the sum of P3,000,000 as a provision. On February 15, 2024, the Supreme Court decided in favor of the party alleging the infringement and ordered the defendant to pay the aggrieved party a sum of P3,500,000. The financial statements of Lowry were approved by the BOD for issue on February 20, 2024. What amount should the Company accrue as provision for the year ended December 31, 2023?Greg Company was granted a patent on January 1, 2017 and appropriately capitalized P 450,000 of related costs. The entity was amortizing the patent over the useful life of 15 years, During 2020, the entity paid P 150,000 in legal costs in successfully defending an attempted infringement of the patent. After the legal action was completed, the entity sold the patent to the plaintiff for P 750,000. The policy is to take no amortization in the year of disposal. The entry to record the sale of patent in 2020:
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