Intermediate Accounting 1 Chapter 12-1 (Part Level Submission)
Cullumber Co., organized in 2017, provided you with the following information.
| 1. | Purchased a license for $31,200 on July 1, 2017. The license gives Cullumber exclusive rights to sell its services in the tri-state region and will expire on July 1, 2025. | |
| 2. | Purchased a patent on January 2, 2018, for $76,600. It is estimated to have a 5-year life. | |
| 3. | Costs incurred to develop an exclusive Internet connection process as of June 1, 2018, were $92,200. The process has an indefinite life. | |
| 4. | On April 1, 2018, Cullumber Co. purchased a diode manufacturer for $701,400. Goodwill recorded in the transaction was $124,200. | |
| 5. | On July 1, 2018, legal fees for successful defense of the patent purchased on January 2, 2018, were $15,426. | |
| 6. | Research and development costs incurred as of September 1, 2018, were $92,200. |
a. Prepare the journal entries to record all the entries related to the patent during 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Date
January 2, 2018
July 1,2018
December 31,2018
b. At December 31, 2018, an impairment test is performed on the license purchased in 2017. It is estimated that the net cash flows to be received from the license will be $20,000, and its fair value is $11,800. Compute the amount of impairment, if any, to be recorded on December 31, 2018.
_____ on impairment $___________
c. What is the amount to be reported for intangible assets on the balance sheet at December 31, 2017? At December 31, 2018?
Amount to be reported Dec. 31, 2017$_______ December 31, 2018 $________
Homework Answers
Hey, I need a bit of help with this. Thanks:) Exercise 9-10 a-b (Part Level Submission) Crane Ltd. has these transactio...
Hey, I need a bit of help with this. Thanks:)
Exercise 9-10 a-b (Part Level Submission) Crane Ltd. has these transactions related to intangible assets and goodwill In 2018, its first year of operations: Jan. 2 Purchased a patent with an estimated useful life of five years for $37,540. The company that sold the patent to Collins registered the patent 10 years ago. Apr. 1 Acquired another company and recorded goodwill of $293,500 as part of the purchase. July 1...
Problem 12-3 (Part Level Submission) Information concerning Bridgeport Corporation’s intangible assets is as follows. 1. On...
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...
Problem 12-3 (Part Level Submission) Information concerning Sarasota Corporation's intangible assets is as follows. 1. On...
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...
Exercise 9-10 a-b (Part Level Submission) Sandhill Ltd. has these transactions related to intangible assets and...
Exercise 9-10 a-b (Part Level Submission) Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Jan. 2 Apr. 1 July 1 Sept. 1 30 Dec. 31 31 Purchased a patent with an estimated useful life of five years for $40,280. The company that sold the patent to Collins registered the patent 10 years ago. Acquired another company and recorded goodwill of $320,700 as part of the purchase. Acquired a franchise for...
Exercise 9-10 a-b (Part Level Submission) Sandhill Ltd. has these transactions related to intangible assets and...
Exercise 9-10 a-b (Part Level Submission) Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Purchased a patent with an estimated useful life of five years for $40,280. The company that sold the patent to Collins registered the patent 10 years ago. Jan. 2 Acquired another company and recorded goodwill of $320,700 as part of the purchase. Apr. 1 Acquired a franchise for $234,000. The franchise agreement is renewable without charge...
*Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, an...
*Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings $67,700,000 49,400,000 90,500,000 145,400,000 20,900,000 Equipment Land The company uses straight-line depreciation for buildings and equipment, its year end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no residual value; the equipment is estimated to have a 10-year useful life and no residual...
ent BACK NE FULL SCREEN PRINTER VERSION CALCULATOR Exercise 147 The following information is available for...
ent BACK NE FULL SCREEN PRINTER VERSION CALCULATOR Exercise 147 The following information is available for Gorman Company. 1. Purchased a copyright on January 1, 2017 for $60,000. It is estimated to have a 10-year life. 2. On July 1, 2017, legal fees for successful defense of the copyright purchased on January 1, 2017, were $17,100. Your answer is correct. Prepare the journal entries to record all the events related to the copyright during 2017. (Credit account titles are automatically...
Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year...
Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Jan. 2 Purchased a patent with an estimated useful life of five years for $40,280. The company that sold the patent to Collins registered the patent 10 years ago. Apr.1 Acquired another company and recorded goodwill of $320,700 as part of the purchase. July 1 Acquired a franchise for $234,000. The franchise agreement is renewable without charge and not expected to expire....
Exercise 9-12 On January 1, 2017, Cullumber Company had a balance of $386,500 of goodwill on...
Exercise 9-12 On January 1, 2017, Cullumber Company had a balance of $386,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2017, the company had the following additional transactions. Jan. 2 July 1 Sept. 1 Purchased a patent (6-year life) $362,250. Acquired a 9-year franchise; expiration date July 1, 2026, $554,400. Research and development costs $185,500. Prepare the necessary entries to record...
*Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property,...
*Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $67,700,000 49,400,000 90,500,000 145,400,000 20,900,000 The company uses straight-line depreciation for buildings and equipment, its year end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no residual value; the equipment is estimated to have a 10-year useful life and no residual...
Hey, I need a bit of help with this. Thanks:)
Exercise 9-10 a-b (Part Level Submission) Crane Ltd. has these transactions related to intangible assets and goodwill In 2018, its first year of operations: Jan. 2 Purchased a patent with an estimated useful life of five years for $37,540. The company that sold the patent to Collins registered the patent 10 years ago. Apr. 1 Acquired another company and recorded goodwill of $293,500 as part of the purchase. July 1...
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...
Exercise 9-10 a-b (Part Level Submission) Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Jan. 2 Apr. 1 July 1 Sept. 1 30 Dec. 31 31 Purchased a patent with an estimated useful life of five years for $40,280. The company that sold the patent to Collins registered the patent 10 years ago. Acquired another company and recorded goodwill of $320,700 as part of the purchase. Acquired a franchise for...
Exercise 9-10 a-b (Part Level Submission) Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Purchased a patent with an estimated useful life of five years for $40,280. The company that sold the patent to Collins registered the patent 10 years ago. Jan. 2 Acquired another company and recorded goodwill of $320,700 as part of the purchase. Apr. 1 Acquired a franchise for $234,000. The franchise agreement is renewable without charge...
*Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings $67,700,000 49,400,000 90,500,000 145,400,000 20,900,000 Equipment Land The company uses straight-line depreciation for buildings and equipment, its year end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no residual value; the equipment is estimated to have a 10-year useful life and no residual...
ent BACK NE FULL SCREEN PRINTER VERSION CALCULATOR Exercise 147 The following information is available for Gorman Company. 1. Purchased a copyright on January 1, 2017 for $60,000. It is estimated to have a 10-year life. 2. On July 1, 2017, legal fees for successful defense of the copyright purchased on January 1, 2017, were $17,100. Your answer is correct. Prepare the journal entries to record all the events related to the copyright during 2017. (Credit account titles are automatically...
Sandhill Ltd. has these transactions related to intangible assets and goodwill in 2018, its first year of operations: Jan. 2 Purchased a patent with an estimated useful life of five years for $40,280. The company that sold the patent to Collins registered the patent 10 years ago. Apr.1 Acquired another company and recorded goodwill of $320,700 as part of the purchase. July 1 Acquired a franchise for $234,000. The franchise agreement is renewable without charge and not expected to expire....
Exercise 9-12 On January 1, 2017, Cullumber Company had a balance of $386,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2017, the company had the following additional transactions. Jan. 2 July 1 Sept. 1 Purchased a patent (6-year life) $362,250. Acquired a 9-year franchise; expiration date July 1, 2026, $554,400. Research and development costs $185,500. Prepare the necessary entries to record...
*Problem 9-8A a-c (Part Level Submission) At January 1, 2018, Oriole Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Equipment Land $67,700,000 49,400,000 90,500,000 145,400,000 20,900,000 The company uses straight-line depreciation for buildings and equipment, its year end is December 31, and it makes adjusting entries annually. The buildings are estimated to have a 40-year useful life and no residual value; the equipment is estimated to have a 10-year useful life and no residual...
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