Sandhill Corporation purchased a patent for $129000 on September 1, 2016. It had a useful life...
Sandhill Corporation purchased a patent for $129000 on September
1, 2016. It had a useful life of 10 years. On January 1, 2018,
Sandhill spent $29000 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 for 2018?
| $26440. |
| $22360. |
| $29020. |
| $28160 |
Homework Answers
Answer: $28,160
Explanation
Amortization from Sept 1, 2016 to Jan 1, 2018 = ($129,000 ÷ 10)
× (1 + 4/12) = $17,200.
Remaining value before defense = $129,000 - $17,200= $111,800
Cost of successful defense = ($111,800 + $29,000) ÷ 5 =
$28,160.
Therefore, amount should be reported for patent amortization expense for 2018 is $28,160
Add Answer to:
Sandhill Corporation purchased a patent for $129000 on September
1, 2016. It had a useful life...
Mags Corporation purchased a patent for $540,000 on September 1, 2014. It had a useful life...
Mags Corporation purchased a patent for $540,000 on September 1, 2014. It had a useful life of 10 years. On January 1, 2016, Mags spent $132,000 to successfully defend the patent in a lawsuit. Mags feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2016? $ Tom Inc. and Jerry Co. made an exchange with no commercial substance. The asset given up by Tom Inc. had...
Sandhill Corporation purchases a patent from Wildhorse Company on January 1, 2020, for $100,800. The patent...
Sandhill Corporation purchases a patent from Wildhorse Company
on January 1, 2020, for $100,800. The patent has a remaining legal
of 16 years. Sandhill feels the patent will be useful for 10 years.
Assume that at January 1, 2022, the carrying amount of the patent
on Sandhill's books is $80,640. In January, Sandhill spends $24,000
successfully defending a patent suit. Sandhill still feels the
patent will be useful until the end of 2029.
Prepare Sandhill's journal entries to record the...
1. Sandhill purchased a patent from Vania Co. for $1,190,000 on January 1, 2018. The patent...
1. Sandhill purchased a patent from Vania Co.
for $1,190,000 on January 1, 2018. The patent is being amortized
over its remaining legal life of 10 years, expiring on January 1,
2028. During 2020, Sandhill determined that the economic benefits
of the patent would not last longer than 6 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...
In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that had...
In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that had a remaining legal life of 14 years. Jennifer estimated that the remaining economic life would be seven years. In January 2018, the company incurred $30,000 in legal costs to defend the patent from an infringement. Jennifer's lawyers were successful, and the remaining years of benefit from the patent were estimated to be six years. The patent amortization expense for 2018 is... Select one: O...
Brief Exercise 12-1 Monty Corporation purchases a patent from Sandhill Company on January 1, 2017, for...
Brief
Exercise 12-1 Monty Corporation purchases a patent from Sandhill
Company on January 1, 2017, for $55,000. The patent has a remaining
legal life of 12 years. Monty feels the patent will be useful for
10 years. Prepare Monty’s journal entries to record the purchase of
the patent and 2017 amortization. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the
account titles and enter 0...
On January 2, 2018, David Corporation purchased a patent for $450,000. The remaining legal life is...
On January 2, 2018, David Corporation purchased a patent for $450,000. The remaining legal life is 10 years, but the company estimated that the patent will be useful only for Six years. In January 2020, the company incurred legal fees of $40,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Required: Prepare journal entries related to the patent for 2018, 2019, and 2020. (If no entry is required for...
On January 2, 2018, David Corporation purchased a patent for $700,000. The remaining legal life is...
On January 2, 2018, David Corporation purchased a patent for $700,000. The remaining legal life is 12 years, but the company estimated that the patent will be useful only for eight years. In January 2020, the company incurred legal fees of $105,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Required: Prepare journal entries related to the patent for 2018, 2019, and 2020. (If no entry is required for...
On January 1, 2021, Weaver Corporation purchased a patent for $225,000. The remaining legal life is...
On January 1, 2021, Weaver Corporation purchased a patent for $225,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2023, the company incurred legal fees of $45,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Weaver Corporation’s year-end is December 31. What is the balance in the Patent account at the end of 2023?
Jaina Corporation purchases a patent from Monty Company on January 1, 2020, for $99,120. The patent...
Jaina Corporation purchases a patent from Monty Company on January 1, 2020, for $99,120. The patent has a remaining legal of 16 years. Jaina feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Jaina's books is $79,296. In January, Jaina spends $23,600 successfully defending a patent suit. Jaina still feels the patent will be useful until the end of 2029. Prepare Jaina's journal entries to record the...
Cheyenne Corporation purchases a patent from Oriole Company on January 1, 2020, for $64,000. The patent...
Cheyenne Corporation purchases a patent from Oriole Company on January 1, 2020, for $64,000. The patent has a remaining legal life of 16 years. Cheyenne feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Cheyenne’s books is $51,200. In January, Cheyenne spends $37,600 successfully defending a patent suit. Cheyenne still feels the patent will be useful until the end of 2029.
Sandhill Corporation purchases a patent from Wildhorse Company
on January 1, 2020, for $100,800. The patent has a remaining legal
of 16 years. Sandhill feels the patent will be useful for 10 years.
Assume that at January 1, 2022, the carrying amount of the patent
on Sandhill's books is $80,640. In January, Sandhill spends $24,000
successfully defending a patent suit. Sandhill still feels the
patent will be useful until the end of 2029.
Prepare Sandhill's journal entries to record the...
1. Sandhill purchased a patent from Vania Co.
for $1,190,000 on January 1, 2018. The patent is being amortized
over its remaining legal life of 10 years, expiring on January 1,
2028. During 2020, Sandhill determined that the economic benefits
of the patent would not last longer than 6 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...
In January 2014, the Jennifer Corporation purchased a patent for $231,000 from Travis Company that had a remaining legal life of 14 years. Jennifer estimated that the remaining economic life would be seven years. In January 2018, the company incurred $30,000 in legal costs to defend the patent from an infringement. Jennifer's lawyers were successful, and the remaining years of benefit from the patent were estimated to be six years. The patent amortization expense for 2018 is... Select one: O...
Brief
Exercise 12-1 Monty Corporation purchases a patent from Sandhill
Company on January 1, 2017, for $55,000. The patent has a remaining
legal life of 12 years. Monty feels the patent will be useful for
10 years. Prepare Monty’s journal entries to record the purchase of
the patent and 2017 amortization. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the
account titles and enter 0...
On January 2, 2018, David Corporation purchased a patent for $450,000. The remaining legal life is 10 years, but the company estimated that the patent will be useful only for Six years. In January 2020, the company incurred legal fees of $40,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Required: Prepare journal entries related to the patent for 2018, 2019, and 2020. (If no entry is required for...
Jaina Corporation purchases a patent from Monty Company on January 1, 2020, for $99,120. The patent has a remaining legal of 16 years. Jaina feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Jaina's books is $79,296. In January, Jaina spends $23,600 successfully defending a patent suit. Jaina still feels the patent will be useful until the end of 2029. Prepare Jaina's journal entries to record the...
Most questions answered within 3 hours.
-
What's the streaming business's problem on the
horizon?
asked 46 minutes ago -
I need help with writing the conclusion for this online lab
report
Abstract
By testing the...
asked 59 minutes ago -
For the reaction 1N2+3H2-----> 2NH3, would the reaction rate
trend be: delta[NH3]/ delta t = -2...
asked 1 hour ago -
Within your current/past organization, identify a problem/issue
and format a design to address same. You may...
asked 1 hour ago -
A sock stuck to the side of a clothes-dryer barrel has a
centripetal acceleration of 24...
asked 2 hours ago -
A perfect gas undergoes an isentropic process such that its
volume doubles. If the ratio of...
asked 2 hours ago -
list the elements in groups 3A to 6A in the same order as in the
periodic...
asked 2 hours ago -
Estimating effect size. Peng and Chen (2014)
evaluated effect size estimates for various tests. In their...
asked 3 hours ago -
Write a script in MySQL that creates and calls a stored
procedure name test. This procedure...
asked 3 hours ago -
If we test the following: H0: μ = 17
vs. H1: μ ≠ 17 and the...
asked 3 hours ago -
in the past year TVG had revenues of 3 million, cost
of goods sold of $25...
asked 3 hours ago -
4) In a polypeptide, which bond cannot rotate because of its
partial double bond character?
The...
asked 3 hours ago