AP8-16A (Intangibles and amortization) Red Bear Ltd. purchased several intangible assets, as follows: Asset Purchase Cost...
I want to know the answer for this... Application Problem 8-16A a-b Red Bear Ltd. purchased several intangible assets, as follows: Asset Asset Purchase Cost $79,000 62,700 Purchase Cost $157,000 280,000 Licence Customer list Patent Copyright The following information is also available: . • • • In addition to the costs listed above, there were legal fees of $10,800 associated with the licence acquisitions. The licences are valid in perpetuity, and sales of the products produced under the licences have...
Prepare entries to ru n related to acquisition and amortization of intangibles, prepare the intangible assets section and note 1.SA (LO 4,5), AP The intangible assets section of mato Corporation's balance sheet at December 31 2022, is presented here. Patents (560,000 cost less $6,000 amortization) $54,000 10,800 Copyrights ($36,000 cost less $25,200 amortization) Total $64.800 The patent was acquired in January 2022 and has a useful life of 10 years. The copyright was acquired in January 2016 and also has...
Amortization of Intangibles For each of the following intangible assets, indicate the amount of amortization expense that should be recorded for the year 2017 and the amount of accumulated amortization on the balance sheet as of December 31, 2017 Trademark Patent Copyright Date of purchase Useful life $40,200 1/1/10 indefinite undefined SL $48,400 $80,000 1/1/12 1/1/15 10 yrs. 20 yrs. 20 yrs. 50 yrs. SL SL Legal life Method "Represents the straight line method. If an amount is zero, enter...
E8-21 LO8-6 Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets Springer Company had three intangible assets at the end of 2020 (end of the accounting year): a. A copyright purchased on January 1, 2020, for a cash cost of $14.500. The copyright is expected to have a 10-year useful life to Springer. b. Goodwill of $65,000 from the purchase of the Hartford Company on July 1, 2019. c. A patent purchased on January 1, 2019, for...
Problem 11-8 Amortization; partial period (LO11-4) The following information concerns the intangible assets of Epstein Corporation a: On June 30, 2018, Epstein completed the acquisition of the Johnstone Corporation for $1.820.000 in cash The fair value of the net identifiable assets of lohnstone was $1,550,000 b Included in the assets purchased from Johnstone was a patent that was valued at 584,600 The remaining legal life of the patent was 14 years, but Epstein believes that the patent will only be...
E9-12 Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets [LO 9-6] Bluestone Company had three intangible assets at the end of the current year. a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $4,000. When purchased the patent had an estimated life of 10 years. b. A trademark was registered with the federal government for $8.500. Management estimated that the trademark could be worth as much as $210,000...
The intangible assets section of Ghani Corporation's balance sheet at December 31, 2017, is as follows : Copyright #1: $36,000 Less: Accumulated amortization: 25,200 $10,800 Trademark 54,000 Goodwill 125,000 Total $189,000 The copyright was acquired in January 2011 and has an estimated useful life of 10 years. The trademark was acquired in January 2017 and is expected to have an indefinite useful life. The following cash transactions may have affected intangible assets during 2018. Jan. 2 Paid $27,000...
Wember Company acquired a subsidiary company on December 31, 2012, and recorded the cost of the intangible assets it acquired as follows: Patent $100,000 Trade name 80,000 Goodwill 150,000 The patent is being amortized by the straight-line method over an expected life of 10 years with no residual value. Amortization has been recorded for the current year. The trade name was considered to have an indefinite life. Because of the success of the subsidiary in the past, Wember has not...
Amortization and Depletion Entries Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. On December 31, the company determined that $3,400,000 of goodwill was impaired. b. Governmental and legal costs of $4,800,000 were incurred on September 30 in obtaining a patent with an estimated economic life of eight years. Amortization is to be for one-fourth of a year. c. Timber rights on a tract of land were...
Amortization and Depletion Entries Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: Timber rights on a tract of land were purchased for $1,980,000 on February 22. The stand of timber is estimated at 9,000,000 board feet. During the current year, 2,400,000 board feet of timber were cut and sold. On December 31, the company determined that $1,190,000 of goodwill was impaired. Governmental and legal costs of $15,840,000...