ZuoTi.Pro
Question

16. On January 1, 2015, Unfortunate Company purchased a copyright for $1,500,000, which it expects to...

16. On January 1, 2015, Unfortunate Company purchased a copyright for $1,500,000, which it expects to have an indefinite useful life. In January 2018, Unfortunate paid $225,000 for legal fees in a successful defense of the copyright. In January 2019, Unfortunate paid for $320,000 for an unsuccessful defense of the copyright. Assuming Unfortunate has no other intangible assets, what amount should be in the Copyright account at the end of fiscal year 2019?

a.   $0

b.   $1,500,000

c.   $1,725,000

d.   $2,045,000

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

In 2019, $320,000 were spent for an unsuccessful defense of the copyright. Since in 2019, copyright was unsuccessfully defended, it ceased to be an asset from 2019. Hence, copyright should not appear in the balance sheet of the company.

Correct option is a.

Kindly comment if you need further assistance. Thanks‼!

0 0
Add a comment
Know the answer?
Add Answer to:
16. On January 1, 2015, Unfortunate Company purchased a copyright for $1,500,000, which it expects to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • In January 2021 Vega Corporation purchased a patent at a cost of $215,000. Legal and filing...

    In January 2021 Vega Corporation purchased a patent at a cost of $215,000. Legal and filing fees of $52,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January 2024, Vega spent $29,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss) in 2024 related to...

  • In January 2021, Vega Corporation purchased a patent at a cost of $200,000. Legal and filing...

    In January 2021, Vega Corporation purchased a patent at a cost of $200,000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January 2024, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss) in 2024 related to...

  • 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?

  • Hepburn Company bought a copyright for $78,000 on January 1, 2015, at which time the copyright...

    Hepburn Company bought a copyright for $78,000 on January 1, 2015, at which time the copyright had an estimated useful life of 12 years. On January 5, 2018, the company determined that the copyright would expire at the end of 2021 How much should Hepburn record as amortization expense for this copyright for 2018? (Do not round your Intermediate calculation and round your answer to the nearest dollar amount.) Multiple Choice 0 $1,300. O S433 o $14,625 o $6,500

  • 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...

  • Question 29 (1 point) In January 2018, Vega Corporation purchased a patent at a cost of...

    Question 29 (1 point) In January 2018, Vega Corporation purchased a patent at a cost of $200.000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January, 2021, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss)...

  • Dailey purchased a truck on January 1, 2015 for $9,000. The company expects the truck to...

    Dailey purchased a truck on January 1, 2015 for $9,000. The company expects the truck to have a useful life of four years with an estimated residual value of $600. Dailey expects to drive the truck 31,000 miles during 2015, 22,000 miles during 2016, 14,000 miles in 2017, and 3,000 miles in 2018, for total expected miles of 70,000. Complete the following using the double-declining-balance method of depreciation. (Complete all answer boxes. Enter a "0" if there are any zero...

  • 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...

  • 1. Moreno Company purchased equipment for $450,000 on January 1, 2010, and will use the double-declining-balance...

    1. Moreno Company purchased equipment for $450,000 on January 1, 2010, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $20,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2012 will be 2. Rooney Company incurred $280,000 of research and development cost in its laboratory to develop a patent granted on January 1, 2011. On July 31, 2011,...

  • On January 1, 2015, a machine was purchased for $101,700. The machine has an estimated salvage...

    On January 1, 2015, a machine was purchased for $101,700. The machine has an estimated salvage value of $6,780 and an estimated useful life of 5 years. The machine can operate for 113,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2015, 22,600 hrs; 2016, 28,250 hrs; 2017, 16,950 hrs; 2018, 33,900 hrs; and 2019, 11,300 hrs.Please show calculations for all problems below. 1) Compute the annual...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT