Wildhorse Company has a December 31 fiscal year end. Selected information follows for Wildhorse Company for two independentsituations as at December 31, 2024:1.2.Wildhorse purchased a patent from Windsor Inc. for $471,000 on January 1, 2021. The patent expires on January 1, 2029.Wildhorse has been amortizing it over its legal life. During 2024, Wildhorse determined that the patent's economic benefitswould not last longer than six years from the date of acquisition.Wildhorse has a trademark that had been purchased in 2017 for $285,000. During 2023, the company spent $50,000 on alawsuit that successfully defended the trademark. On December 31, 2024, it was assessed for impairment and therecoverable amount was determined to be $300,000. (b)For each of these assets, determine what, if anything, will be recorded on Wildhorse's 2024 income statement. Be specific aboutthe account name and the amount. (Round answers to 0 decimal places, eg. 5,276)Wildhorse CompanyIncome Statement (Partial)$

Wildhorse Company has a December 31 fiscal year end. Selected information follows for Wildhorse Company for two independent situations as at December 31, 2024: 1. Wildhorse purchased a patent from Windsor Inc. for $471,000 on January 1, 2021. The patent expires on January 1, 2029. Wildhorse has been amortizing it over its legal life. During 2024, Wildhorse determined that the patent's economic benefits would not last longer than six years from the date of acquisition, 2. Wildhorse has a trademark that had been purchased in 2017 for $285,000. During 2023, the company spent $50,000 on a lawsuit that successfully defended the trademark. On December 31, 2024, it was assessed for impairment and the recoverable amount was determined to be $300,000.

Wildhorse Company has a December 31 fiscal year end. Selected information follows for Wildhorse Company for two independent situations as at December 31, 2024: 1. Wildhorse purchased a patent from Windsor Inc. for $471,000 on January 1, 2021. The patent expires on January 1, 2029. Wildhorse has been amortizing it over its legal life. During 2024, Wildhorse determined that the patent's economic benefits would not last longer than six years from the date of acquisition, 2. Wildhorse has a trademark that had been purchased in 2017 for $285,000. During 2023, the company spent $50,000 on a lawsuit that successfully defended the trademark. On December 31, 2024, it was assessed for impairment and the recoverable amount was determined to be $300,000.

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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