Ans- Amortization expense for year 1,2 and 3 for amortization of expenses over 60 months:-
Description | Amount | Explanation |
Research and experimental expenses | $29,750 | |
Recovery period in months | 60 | |
Monthly straight line amortization | $495.83 | $29,750/ 60 |
B's business months during year 1 | 6 | July through December |
Year 1- Straight line amortization | $2,975 | $495.83*6 |
B's business months during year 2 | 12 | January through December |
Year-2 Straight line depreciation | $5,950 | $495.83*12 |
B's business months during year 3 (Before patent is issued in August) |
7 | January through July |
Year 3-Straight line amortization on research and experimental costs | $3,470.83 | $495.83*7 |
Accumulated amortization through July of Year 3 | $12,395.83 | $2,975+$5,950+ $3,470.83 |
Unamortized research and experimental expenditures as of August,year 3 | $17,354 | $29,750-$12,395.83 |
Calculate patent amortization expense in year 3 assuming to amortize research and experimental expense:-
Description | Amount | Explanation |
Unamortized research and experimental expenses | $17,354 | |
Legal expenses related to patent | $26,750 | |
Amortizable expenses for patent | $44,104 | $17,354+$26,750 |
Recovery period in months | 120 | 10 years |
Monthly straight line amortization | $367.53 | $44,104/ 120 |
Bethany's business months from August through December | 5 | |
Year 3- Straight line amortization for patent | $1,837.67 | $367.53 *5 |
Required information The following information applies to the questions displayed below in research and experimental costs...
Required information The following information applies to the questions displayed below.] Bethany incurred $29,750 in research and experimental costs for developing a specialized product during July of year 1 Bethany went through a lot of trouble and spent $26,750 in legal fees to receive a patent for the product in August of year 3. Bethany expects the patent to have a remaining useful life of 10 years. (Do not round intermediate calculations. Round your final answers to nearest whole dollar...
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Required information Problem 10-74 (LO 10-4) [The following information applies to the questions displayed below.] Bethany incurred $38,000 in research and experimental costs for developing a specialized product during July of year 1. Bethany went through a lot of trouble and spent $22,000 in legal fees to receive a patent for the product in August of year 3. Bethany expects the patent to have a remaining useful life of 10 years. (Do not round intermediate calculations. Round your final answers...
Bethany incurred $34,000 in research experimental cost for developing a specialized product during July of Year 1. Bethany went through a lot of trouble and spent $13,000 in legal fees to receive a patent for the product in August of Year 3. Bethany expects the patent to have a remaining useful life of 10 years. Round your final answer to the nearest whole dollar. If Bethany chose to capitalize but not amortize the research and experimental expenses she incurred in...
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Required Information The following information applies to the questions displayed below) Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable. Expense Attorney fees for articles of incorporation March 1 - March 30 wages March 1 - March 30 rent Stock issuance costs April 1 - May 30 wages Date Amount February 10 $40,000 March 30...
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42 Required information [The following information applies to the questions displayed below Part 3 of 4 Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable.) 10 points Еxpenne Date Amount Attorney fees for articles of incorporation March 1-March 30 wagen March 1-March 30 rent Stock iaauance costa April 1 May 30 wages February 10 March...
Required information [The following information applies to the questions displayed below] Melissa recently paid $870 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $400 Tee to register for the conference, $260 per night for three nights' lodging. $120 for meals, and $425 for cab fare (Leave no answers blank. Enter zero if applicable. Do not round intermediate calculations. Round your final answer to the nearest dollar amount.) b....