Is trademark depreciated? Trademark with a remaining life of ten years but renewable for an infinite...
Is trademark depreciated?
Trademark with a remaining life of ten years but renewable for an infinite period; expected to be used indefinitely
Homework Answers
Answer: No; this should not be depreciated or amortized.
This is an intangible asset, since it doesn’t have physical existence. In such case, the cost of trademark could be amortized periodically (by charging a portion of such cost to the income statement) if it has a definite life or identifiable life – such as the trademark will last for 16 years and can’t be renewed further.
In this scenario, although there is a remaining life but it could be renewed and used indefinitely; therefore, there should not be any depreciation.
Add Answer to:
Is trademark depreciated?
Trademark with a remaining life of ten years but renewable for
an infinite...
Coffee Company Limited has a trademark with a carrying amount of $83,750, and expected useful life...
Coffee Company Limited has a trademark with a carrying amount of $83,750, and expected useful life of 15 years. As part of an impairment test on December 31, 2020, due to a change in customer tastes, Coffee Company gathered the following data about the trademark for the purposes of an impairment test: fair value $45,000; fair value less costs to sell $40,000; value in use $95,200; and undiscounted future cash flows $125,000. Assume that Coffee Company is reporting under IFRS....
Assume Corbins ,Inc purchased an automated machine 5 years ago that had an estimated economic life of 10 years. The Automated Machines originally cost $300,000 and has been fully depreciated, leaving...
Assume Corbins ,Inc purchased an automated machine 5 years ago that had an estimated economic life of 10 years. The Automated Machines originally cost $300,000 and has been fully depreciated, leaving a current book value of $0. The actual market value of this drill press is $80,000. The company is considering replacing the automated machine with a new one costing $380,000. Shipping and installation charges will add an additional $10,000 to the cost. Corbins., Inc also has paid a sunk...
The machine originally had an estimated useful life of 9 years, but after 3 complete years,...
The machine originally had an estimated useful life of 9 years, but after 3 complete years, it was decided thatvthe original estimate if useful life should have been 13 years. At that point the remaining cost to be depreciated should be allocated over tge remaining
7. A water treatment plant has a remaining service life of 15 years. It costs $675,000...
7. A water treatment plant has a remaining service life of 15 years. It costs $675,000 per year to operate and maintain the facility. The O&M costs are expected to stay constant for the first three years and then begin to increase by 0.5% a year for the next 12 years. What is the present worth of the facility if the nominal interest rate is 6%? (Hint: Draw the cash flow diagram for clarity)
If C14 has a half-life of 4,000 years, what fraction will be remaining after 36,000 years?...
If C14 has a half-life of 4,000 years, what fraction will be remaining after 36,000 years? IfI 131 has a half-life of 8 days, what fraction will be left after a year?
31. On June 30, a machine with a useful life of ten years and a residual...
31. On June 30, a machine with a useful life of ten years and a residual value of $10,000 was purchased for $75,000. What is the depreciation expense for year 2 under straight-zine depreciation 75,000 - 10.000 65.000 a. $6,500 6. $13,000 c. $3,250 d. $23,000 11. attente av tre
XYZ Company’s machine was purchased 5 years ago for $55,000. It had an expected life of...
XYZ Company’s machine was purchased 5 years ago for $55,000. It had an expected life of 10 years when it was bought, and its remaining depreciation is $5,500 per year for each year of its remaining life and can be sold for $20,000 at the end of its useful life. A new machine can be purchased for $120,000, including the installation costs. During its 5-year life, it will reduce cash operating expenses by $30,000 per year. Sales revenue will not...
YZ Company’s machine was purchased 5 years ago for $55,000. It had an expected life of...
YZ Company’s machine was purchased 5 years ago for $55,000. It had an expected life of 10 years when it was bought, and its remaining depreciation is $5,500 per year for each year of its remaining life and can be sold for $20,000 at the end of its useful life. A new machine can be purchased for $120,000, including the installation costs. During its 5-year life, it will reduce cash operating expenses by $30,000 per year. Sales revenue will not...
A company purchases equipment for $ 10,000 and originally estimates useful life of 4 years and...
A company purchases equipment for $ 10,000 and originally estimates useful life of 4 years and a residual value of $1,000 to be depreciated using straight-line method. After 2 full years, the company revises the useful life to 6 years with $0 residual value. Depreciation expense for the remaining would be : A) $667 B) $1375 C) $1250 D) $875
A machine has a book value of $500,000 and remaining useful life of 5 years before...
A machine has a book value of $500,000 and remaining useful life of 5 years before an addition was made costing $50,000 that extended its useful life 3 more years. What is the new depreciation rate assuming the machine has no salvage value?
7. A water treatment plant has a remaining service life of 15 years. It costs $675,000 per year to operate and maintain the facility. The O&M costs are expected to stay constant for the first three years and then begin to increase by 0.5% a year for the next 12 years. What is the present worth of the facility if the nominal interest rate is 6%? (Hint: Draw the cash flow diagram for clarity)
If C14 has a half-life of 4,000 years, what fraction will be remaining after 36,000 years? IfI 131 has a half-life of 8 days, what fraction will be left after a year?
31. On June 30, a machine with a useful life of ten years and a residual value of $10,000 was purchased for $75,000. What is the depreciation expense for year 2 under straight-zine depreciation 75,000 - 10.000 65.000 a. $6,500 6. $13,000 c. $3,250 d. $23,000 11. attente av tre
Most questions answered within 3 hours.
-
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 21 minutes ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 20 minutes ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 2 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 2 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 2 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 3 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 4 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 4 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 4 hours ago -
1.
What is the minimum volume to use in the Spec 20 cuvette in order
to...
asked 4 hours ago -
A builder wants to install wall-to-wall carpeting in a living
room of length 8.87 m and...
asked 4 hours ago -
Organizational change can produce anxiety in those affected by
the change. In what ways can change...
asked 4 hours ago