Answer 1 | ||
Kerr Corporation | ||
Intangible Assets section of balance sheet | ||
Dec 31, 2019 | ||
Franchise | 57510 | |
Patent | 78588 | |
Trademark | 53164 | |
Total | 189262 | |
Schedule 1 | ||
Cost at Jan 1 2019 | 63900 | |
Amortisation for 2019 | 6390 | |
Balance at Dec 31 2019 | 57510 | |
Schedule 2 | ||
Capitalised cost | 87320 | |
Amortisation for 2019 | 8732 | |
Balance at Dec 31 2019 | 78588 | |
Schedule 3 | ||
Cost of Trademark at July 1 2016 | 50000 | |
Amorisation through Dec 31 2018 (2.5 years) | 5000 | |
Amorisation 1 jan 2019 to 30 june 2019 (0.5 years) | 1000 | |
Cost of successful ligitation in 2019 | 10400 | |
Balance July 1 2019 | 54400 | |
Amorisation 1 Jul 2019 to 31 Dec 2019 (0.5 years) | 1236 | |
Balance at Dec 31 2019 | 53164 | |
Answer 2 | ||
Amortisation - Franchise | 6390 | |
Franchse Fee on Revenue | 37200 | |
Imputed Interest expense | 8946 | |
Total Franchise expense | 52536 | |
Amortisation - Patent | 8732 | |
Amortisation - Trademark (1000+1236) | 2236 | |
Total Expense | 63504 | |
WORKINGS
FRANCHISE FEE | $ | |||||||
Payment in 2019 | 26000 | Revenue from Franchise | 930000 | Balance beginning 2019 | 63900 | |||
Present Value of future payments | 37900 | Royalty payment @4% of revenue | 37200 | Interest cost @14% | 8946 | |||
Intangible asset (Franchise) beginning 2019 | 63900 | |||||||
Life | 10 years | |||||||
Amortisation in 2019 | 6390 | |||||||
Franchise Balance closing 2019 | 57510 | |||||||
PATENTS | $ | |||||||
Experiment and Development Costs | 69000 | |||||||
Costs for Registration and Patent | 18320 | |||||||
Total costs for Patent | 87320 | |||||||
Life | 10 years | |||||||
Amortisation in 2019 | 8732 | |||||||
Patent Balance closing 2019 | 78588 | |||||||
TRADEMARKS | $ | |||||||
Trademark cost on July 1 2016 | 50000 | Amotisation for 6 months before July 1 2019 | 1000 | |||||
Useful life | 25 years | Amotisation for 6 months after July 1 2019 | 1236 | |||||
Amoritsation per annum till July 1 2019 | 2000 | Amortisation for 2019 | 2236 | |||||
Cost on July 1 2016 | 50000 | |||||||
Usage till July 1 2019 | 3 years | |||||||
Amortisation till July 1 2019 (2000 x 3) | 6000 | |||||||
Balance on July 1 2019 | 44000 | |||||||
Ligitation expense on July 1 2019 | 10400 | |||||||
Updated balance on July 1 2019 | 54400 | |||||||
Remaining Life on July 1 2019 | 22 years | |||||||
Amoritsation per annum after July 1 2019 | 2473 | |||||||
Amortisation for 6 months after July 1 2019 | 1236 | |||||||
Balance at end of 2019 | 53164 | |||||||
Comprehensive Information concerning Kerr Corporation's intangible assets is as follows: a. On January 1, 2019, Kerr...
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...
Information concerning Sheffield Corporation's intangible assets is as follows. 1. On January 1, 2020, Sheffield signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $100,000. Of this amount, $20,000 was paid when the agreement was signed, and the balance is payable in 4 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...
Problem 12-3 (Part Level Submission) Information concerning Sarasota Corporation's intangible assets is as follows. 1. On January 1, 2017, Sarasota signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $95,000. Of this amount, $19,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $19,000 each, beginning January 1, 2018. The agreement provides that the down payment is not refundable and no future...
information concerning Martinez Corporation’s intangible assets is as follows 1.On January 1, 2020, Martinez signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $77,500. Of this amount, $15,500 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $15,500 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor....
can you please answer the questions that were not correct, please. 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...
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...
Problem 12-3 (Part Level Submission) Information concerning Bridgeport Corporation’s intangible assets is as follows. 1. On January 1, 2017, Bridgeport 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 down payment is not refundable and no future...
Information concerning Grouper Corporation’s intangible assets is as follows. 1. On January 1, 2020, Grouper signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $72,500. Of this amount, $14,500 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $14,500 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the...
Question 9 of 9 -/ 15 View Policies Current Attempt in Progress Information concerning Ayayai Corporation's intangible assets is as follows. 1. On January 1, 2020, Ayayai signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $100,000. Of this amount, $20,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $20,000 each, beginning January 1, 2021. The agreement provides that the down...
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...