On January 2, 2017, Pharoah Co. bought a trademark from Royce, Inc. for $1920000. An independent...
On January 2, 2017, Pharoah Co. bought a trademark from Royce,
Inc. for $1920000. An independent research company estimated that
the remaining useful life of the trademark was 10 years. Its
unamortized cost on Royce’s books was $1420000. In Pharoah’s 2017
income statement, what amount should be reported as amortization
expense?
| $71000. |
| $192000. |
| $142000. |
| $96000. |
Homework Answers
|
Amortization expense = Cost /Useful life = 1,920,000 / 10 = 192,000 Option B is the answer |
|
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On January 2, 2017, Pharoah Co. bought a trademark from Royce,
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Presented below is selected information for Pharoah Company. Answer the questions asked about each of the...
Presented below is selected information for Pharoah Company. Answer the questions asked about each of the factual situations. (Do not leave any answer field blank. Enter 0 for amounts.) 1. Pharoah purchased a patent from Vania Co. for $1,150,000 on January 1, 2018. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Pharoah determined that the economic benefits of the patent would not last longer than 6 years from...
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Exercise 12-04 Presented below is selected information for Pharoah Company. Answer the questions asked about each...
Exercise 12-04
Presented below is selected information for Pharoah
Company.
Answer the questions asked about each of the factual situations.
(Do not leave any answer field blank. Enter 0 for
amounts.)
1. Pharoah purchased a patent from Vania Co. for
$1,260,000 on January 1, 2018. The patent is being amortized over
its remaining legal life of 10 years, expiring on January 1, 2028.
During 2020, Pharoah determined that the economic benefits of the
patent would not last longer than 6...
Kreiser Company had three intangible assets at the end of 2017 (end of the accounting year):...
Kreiser Company had three intangible assets at the end of 2017 (end of the accounting year): a. A patent was purchased from J. Miller on January 1, 2017, for a cash cost of $5,640. When purchased, the patent had an estimated life of fifteen years. b. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $200,000 because it has an indefinite life. c. On January 1, 2017, computer...
a. A patent purchased this year from Miller Co. on January 1 for a cash cost...
a.
A patent purchased this year from Miller Co. on January 1 for a
cash cost of $2,200. When purchased, the patent had an estimated
life of 11 years . b. A trademark was registered with the federal
government for $5,000. Management estimated that the trademark
could be worth as much as $140,000 because it has an indefinite
life. c. Computer licensing rights were purchased this year on
January 1 for $36,000. The rights are expected to have a four-year...
Sunland Company purchases a patent for $186,200 on January 2, 2017. Its estimated useful life is...
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Exercise 12-04
Presented below is selected information for Pharoah
Company.
Answer the questions asked about each of the factual situations.
(Do not leave any answer field blank. Enter 0 for
amounts.)
1. Pharoah purchased a patent from Vania Co. for
$1,260,000 on January 1, 2018. The patent is being amortized over
its remaining legal life of 10 years, expiring on January 1, 2028.
During 2020, Pharoah determined that the economic benefits of the
patent would not last longer than 6...
Kreiser Company had three intangible assets at the end of 2017 (end of the accounting year): a. A patent was purchased from J. Miller on January 1, 2017, for a cash cost of $5,640. When purchased, the patent had an estimated life of fifteen years. b. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $200,000 because it has an indefinite life. c. On January 1, 2017, computer...
a.
A patent purchased this year from Miller Co. on January 1 for a
cash cost of $2,200. When purchased, the patent had an estimated
life of 11 years . b. A trademark was registered with the federal
government for $5,000. Management estimated that the trademark
could be worth as much as $140,000 because it has an indefinite
life. c. Computer licensing rights were purchased this year on
January 1 for $36,000. The rights are expected to have a four-year...
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