a)
SANDRO CORPORATION | |
Intangible Assets | |
December, 31,2015 | |
Franchise, | $ 52,830.00 |
Patent | $ 15,400.00 |
Trademark | $ 39,600.00 |
Total Intangible Assets | $ 107,830.00 |
Working Note-
Working Note-1 | Franchise, |
Cost of franchise on 1/1/15 ($15,000 + $43,700) | $ 58,700.00 |
2010 amortization ($58,700 X 1/10) | $ 5,870.00 |
Cost of franchise, net of amortization | $ 52,830.00 |
Working Note-2 | Patent |
Cost of securing patent on 1/2/15 | $ 17,600.00 |
2010 amortization ($17,600 X 1/8) | $ 2,200.00 |
Cost of franchise, net of amortization | $ 15,400.00 |
Working Note-3 | Trademark |
Cost of trademark on 7/1/12 | $ 36,000.00 |
Amortization, 7/1/12 to 7/1/15 ($36,000 X 3/20) | $ 5,400.00 |
Book value on 7/1/15 | $ 30,600.00 |
Cost of successful legal defense on 7/1/15 | $ 10,200.00 |
Book value after legal defense | $ 40,800.00 |
Amortization, 7/1/15 to 12/31/15 ($40,800 X 1/17 X 6/12) | $ 1,200.00 |
Cost of trademark, net of amortization | $ 39,600.00 |
b)
Sandro Corporation | |
Schedule of expenses | |
For the Year Ended December 31, 2015 | |
Interest expense ($43,700 X 14%) | $ 6,118.00 |
Franchise amortization (Working Note-1) | $ 5,870.00 |
Franchise fee ($900,000 X 5%) | $ 45,000.00 |
Patent amortization (Working Note-2) | $ 2,200.00 |
Amortization, 1/1/15 to 6/30/15 ($36,000 X 1/20 X 6/12) | $ 900.00 |
Amortization, 7/1/15 to 12/31/15 ($40,800 X 1/17 X 6/12)] | $ 1,200.00 |
Total Expenses | $ 61,288.00 |
2 3 P12-3 (Accounting for Franchise, Patents, and Trademark) Information concerning Sandra, Corpora- tion's intangible assets...
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