Use the following to answer questions 31-32 Last year the company had the following expenditures related to developing its trademark: General advertising costs Advertising specifically focused on trademark Legal fees to register trademark Legal fees for successful defense of new trademark Total $200,000 50,000 5,000 80,000 $335,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the trademark. Management contends that all the costs increase the value of the trademark and, therefore, should be capitalized. 31. Which of the above costs should NOT be capitalized? 32. $ What is the total cost that should be capitalized to the trademark account?

Use the following to answer questions 31-32 Last year the company had the following expenditures related to developing its trademark: General advertising costs Advertising specifically focused on trademark Legal fees to register trademark Legal fees for successful defense of new trademark Total $200,000 50,000 5,000 80,000 $335,000 During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all the above as costs of the trademark. Management contends that all the costs increase the value of the trademark and, therefore, should be capitalized. 31. Which of the above costs should NOT be capitalized? 32. $ What is the total cost that should be capitalized to the trademark account?

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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) Constrictor developed a new machine for manufacturing baseballs. Because the machine is considered very valuable, the company had it patented. The following expenditures were incurred in developing and patenting the machine. Purchases of special equipment to be used solely for development of the new machine 1,820,000Research salaries and fringe benefits for engineers and scientists 171,000Cost of testing prototypes 236,000Legal costs for filing for patent 127,000Fees paid to government patent office 25,000Drawings required by patent office to be field with patent application 47,000Constrictor elected to amortize the patent over its legal life. At the beginning of the second year, Constrictor Enterprises paid P240,000 to successfully defend the patent in an infringement suit. At the beginning of the fourth year, Constrictor determined that the remaining estimated useful life of the patent was five years. The carrying amount of the patent at the end of fourth year is A. 135,320 B.…
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Autobots Bottling purchased for P800,000 a trademark for a very successful soft drink it markets under the name OK!, The trademark was determined to have an indefinite life. A competitor recently introduced a product that is in direct competition with the OK!, thus suggesting the need for an impairment test. Data gathered by Autobots suggests that the useful life of trademark is still indefinite, but the cash flows expected to be generated by the trademark have been reduced either to P30,000 per year (with a probability of 80%) or to P60,000 per year (with 20% probability). The appropriate risk-free interest rate is 10%. The appropriate risk- adjusted interest rate is 5%. The loss on impairment of trademark isA. 440,000 B. 320,000 C. 200,000 D. 80,000
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The translation may be awkward. Please tell me the detailed explanation and answer.Please tell me how the answer process comes out. 1. Double-declining-balance methodOn January 1, 2018, Company A purchased one mechanical device. The acquisition cost of machinery is 800,000, and the content training is 8 years. The double-declining-balance method is applied separately when the residual value of the machine is 300,000 and 100,000, and the depreciation cost of the machine in 2020, 2021 and 2022 is calculated and depreciated. If there is a difference, please explain why. (Round to the nearest whole number when calculating depreciation.) 2, depreciation / sum-of-the-years'-digits methodOn October 1, Company A paid 1,600,000,000 cash and purchased the building. It is estimated that this building can be used for 5 years. The estimated residual value of the building is 100,000,000. If you use the sum-of-the-years'-digits method, calculate the depreciation of the building on your statement of…
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Avery and Zeger Walworth are continuing to review business practices. Currently, they are reviewing the company's property, plant, and equipment and have gathered the following information: Data table Asset Canoes Land Building Acquisition Date Nov. 3, 2024 Dec. 1, 2024 Dec. 1, 2024 Dec. 2, Canoes 2024 Computer Mar. 2, 2025 Office Requirements Cost $ 6,720 8 years 85,000 Estimated Monthly Estimated Residual Depreciation Depreciation Life Value Method* Expense 164,000 years 6,240 8 years 2,250 5 years $ 0 20,000 0 1,300 SL n/a SI SL DDB $ 1. Calculate the amount of monthly depreciation expense for the computer and office furniture for 2025. 2. For each asset, determine the book value as of December 31, 2024. Then, calculate the depreciation expense for the first six months of 2025 and the book value as of June 30, 2025. 3. Prepare a partial balance sheet showing Property, Plant, and Equipment as of June 30, 2025. 70 800 65 X ka