What will be the value of the patent on the December 31, 2018 balance sheet of Cao? Show your computations.
What is the amortization expense related to the trademark that will be shown on Cao’s Income Statement for the year ended December 31, 2018? Show your computations.
Answer is given below with working
Cao incurred $115,000 of experimental and development costs in its laboratory during 2018 to develop a...
. Cao incurred $115,000 of experimental and development costs in its laboratory to develop a patent that was granted on July 1, 2020. Legal fees and other costs during 2020 associated with registration of the patent totaled $27,000. Expenditures for successful litigation in defense of the patent totaling $8,700 were paid on November 1, 2020. Cao estimates that the useful life of the patent will be 10 years. What is the total amortization expense for the patent in 2020? (Show...
1. On January 1, 2020, Cao signed an agreement to operate as a franchisee of ATK Ltd. for an initial franchise fee of $150,000. of this amount, $30,000 was paid when the agreement was signed, and the balance is payable in 6 annual payments of$20,000 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020, of the 6 annual...
1. On January 1, 2020, Cao signed an agreement to operate as a franchisee of ATK Ltd. for an initial franchise fee of $150,000. Of this amount, $30,000 was paid when the agreement was signed, and the balance is payable in 6 annual payments of$20,000 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020, of the 6 annual...
1. On January 1, 2020, Cao signed an agreement to operate as a franchisee of ATK Ltd. for an initial franchise fee of $150,000. Of this amount, $30,000 was paid when the agreement was signed, and the balance is payable in 6 annual payments of$20,000 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020, of the 6 annual...
GreenBeanCasserole (GBC) Corporation incurred $480 of research and development costs to develop a product for which a patent was granted on January 1, 2014. Legal fees and other costs associated with registration of the patent totaled $80,000. The patent has a legal life of 10 years and a useful life of 12 years. On January 1, 2016, GBC paid $120,000 for legal fees in a successful defense of the patent. (a) What is the total amount capitalized for the patent...
Comprehensive Information concerning Kerr Corporation's intangible assets is as follows: a. On January 1, 2019, Kerr signed an agreement to operate as a franchisee of Rapid Copy Service Inc. for an initial franchise fee of $78,000. Of this amount, $26,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $13,000 each beginning January 1, 2020. The agreement provides that the down payment is not refundable and no future services are required of...
SY-KOH Company incurred P425,500 of research and development cost to develop a product for which a patent was granted on April 30, 2016. Legal fees and other costs associated with the registration of the patent totalled P68,800, legal fees in successfully defending amounted to 276,250. The estimated useful life of the patent is equal to its legal life. During 2019, SY-KOH determined that the economic benefits of the patent would not last longer than 8 years from the date of...
2 3 P12-3 (Accounting for Franchise, Patents, and Trademark) Information concerning Sandra, Corpora- tion's intangible assets is as follows. 1. On January 1, 2015, Sandro signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of R$75,000. Of this amount, R$15,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of R$15,000 each, beginning January 1, 2016. The agreement provides that the down payment is...
Comprehensive Information concerning Pren-tech Corporation's intangible assets is as follows: a. On January 1, 2019, Pren-tech signed an agreement to operate as a franchisee of Rapid Copy Service Inc. for an initial franchise fee of $101,000 of this amount, $25,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $19,000 each beginning January 1, 2020. The agreement provides that the down payment is not refundable and no future services are required of...
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Problem 12-3 Information concerning Pina Corporation's intangible assets is as follows. 1. On January 1, 2017, Pina signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $50,000. Of this amount, $10,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $10,000 each, beginning January 1, 2018. The agreement provides that the...