What should be the amortization expense for 2022?
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Q: amortization expense in 2024?
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What should be the amortization expense for 2022?
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- Sheridan Corp. incurred $890000 of research and development costs to develop a product for which a patent was granted on January 2, 2018. Legal fees and other costs associated with registration of the patent totaled $165000. On March 31, 2021, Sheridan paid $375000 for legal fees in a successful defense of the patent. The total amount capitalized for the patent through March 31, 2021 should beRemington Corporation purchases a patent from Durler Company on January 1, 2020, for $84,000. The patent has a remaining legal of 16 years. Remington feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Remington's books is $67,200. In January, Remington spends $20,000 successfully defending a patent suit. Remington still feels the patent will be useful until the end of 2029. Prepare Remington's journal entries to record the amortization for 2020 and 2022.On April 1, 2020, the Tech Corp. acquired a patent for $162,000. This patent has an estimated useful life of 12 years with an estimated residual value of $18,000. Required: a. In determining the 12-year useful life of this patent, what two lives of the patent did Tech consider? b. Which of these two lives did Tech use as the patent's useful life or is that determinable? c. Make the December 31, 2020, entry for Tech to record the 2020 amortization of this patent in the manner that Tech would have to use in this class. d. What will be the book value of this patent on the December 31, 2023, balance sheet? 14 010 120m 20 1
- Presented below is selected information for Sandhill Company. Answer the questions asked about each of the factual situations. (Do not leave any answer field blank. Enter O for amounts.) (a) On January 1, 2017, Sandhill incurred organization costs of $265,000. What amount of organization expense should be reported in 2017? Amount to be reported $ (b) Sandhill bought a franchise from Carla Vista Co. on January 1, 2016, for $190,000. The carrying amount of the franchise on Carla Vista's books on January 1, 2016, was $238,00O. The franchise agreement had an estimated useful life of 10 years. Because Sandhill must enter a competitive bidding at the end of 2018, it is unlikely that the franchise will be retained beyond 2025. What amount should be amortized for the year ended December 31, 2017? Amount to be amortized $ %24Cayman Corp. incurred $ 140,000 of basic research and $ 35,000 of development costs to develop a product for which a patent was granted on January 2, 2015. Legal fees and other costs associated with registration of the patent totalled $ 50,000. On March 31, 2020, Cayman paid $ 75,000 for legal fees in a successful defence of the patent. The total amount capitalized for the patent through March 31, 2020 should be $ 265,000. $ 160,000.Romo Company spent $190,000 developing a new process, $45,000 in legal fees to obtain a patent, and $91,000 to market the process that was patented, all in the year 2020. How should these costs be accounted for in 2020?
- 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? O $30,000 O $25,000 O $22,500 $37,500 O There is not enough information to answer the question.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 $84,000Carla Vista Corporation purchased a patent for $12750 on September 1, 2019. It had a useful life of 10 years. On January 1, 2021, Carla Vista spent $28000 to successfully defend the patent in a lawsuit. Carla Vista feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2021? $27700. $28550. $22100. $26000.
- 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.1. Pharoah purchased a patent from Vania Co. for $2,700,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Pharoah determined that the economic benefits of the patent would not last longer than 7 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020? The amount to be reported 2$ 2. Pharoah bought a franchise from Alexander Co. on January 1, 2019, for $979,000. The carrying amount of the franchise on Alexander's books on January 1, 2019, was $635,000. The franchise agreement had an estimated useful life of 20 years. Because Pharoah must enter a competitive bidding at the end of 2028, it is unlikely that the franchise will be retained beyond 2028. What amount should be amortized for the year ended December 31, 2020? The amount to be amortized 3. On January 1, 2020, Pharoah incurred organization…
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