Buchanan Company recently was sued by a competitor for patent infringement. Attorneys have determined that it...
Buchanan Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that Buchanan will lose the case and that a reasonable estimate of damages to be paid by Buchanan is $305,090. In light of this case, Buchanan is considering establishing a $112,720 self-insurance allowance.
What entry, if any, should Buchanan record to recognize this loss contingency? (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Homework Answers
| Account Titles and Explanation | Debit | Credit |
| Litigation Expense | 305090 | |
| Litigation Liability | 305090 | |
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Buchanan Company recently was sued by a competitor for patent infringement. Attorneys have determined that it...
Bridgeport Company recently was sued by a competitor for patent infringement. Attorneys have determined that it...
Bridgeport Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that Bridgeport will lose the case and that a reasonable estimate of damages to be paid by Bridgeport is $294,900. In light of this case, Bridgeport is considering establishing a $97,700 self-insurance allowance. What entry, if any, should Bridgeport record to recognize this loss contingency? (If no entry is required, select "No Entry" for the account titles and enter 0 for the...
On June 1, 2015, Grouper spent $17,280 to successfully prosecute a patent infringement suit. As a result, the estimate...
On June 1, 2015, Grouper spent $17,280 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2015. Prepare all journal entries required in 2015 and 2016. (Round answers to O decimal places, e.g. 8,564. 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 o for the amounts.)...
On June 1, 2018, Sheffield spent $10,440 to successfully prosecute a patent infringement suit. As a...
On June 1, 2018, Sheffield spent $10,440 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2018. Prepare all journal entries required in 2018 and 2019. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit 2018...
On June 1, 2018, Ayayai spent $10,440 to successfully prosecute a patent infringement suit. As a...
On June 1, 2018, Ayayai spent
$10,440 to successfully prosecute a patent infringement suit. As a
result, the estimate of useful life was extended to 12 years from
June 1, 2018. Prepare all journal entries required in 2018 and
2019.
In 2020, Ayayai determined that a competitor’s product would
make the New Age Piano obsolete and the patent worthless by
December 31, 2021. Prepare all journal entries required in 2020 and
2021.
During 2016, Ayayai Corporation spent $175,680 in research...
Please explain * Question 1 Wildhorse Ltd. purchased a patent on September 1, 2017 for $41,860....
Please explain
* Question 1 Wildhorse Ltd. purchased a patent on September 1, 2017 for $41,860. At the time of purchase, Wildhorse estimated that the patent's economic benefits would last until the end of 2021 fiscal year. Wildhorse's fiscal year-end is December 31. On April 1. 2020, Wildhorse sold the patent to another company. Prepare the journal entry to record the sale, assuming Wildhorse sold the patent for $21,705. (Credit account titles are automatically indented when amount is entered. Do...
Question 10 Izzy Inc. purchased a patent for $350,000 which has an estimated useful life of...
Question 10 Izzy Inc. purchased a patent
for $350,000 which has an estimated useful life of 10 years. Its
pattern of use or consumption cannot be reliably determined.
Prepare the entry to record the amortization of the patent in its
first year of use. (Credit account titles are automatically
indented when the 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.) Account Titles and...
Brief Exercise 12-1 Monty Corporation purchases a patent from Sandhill Company on January 1, 2017, for...
Brief
Exercise 12-1 Monty Corporation purchases a patent from Sandhill
Company on January 1, 2017, for $55,000. The patent has a remaining
legal life of 12 years. Monty feels the patent will be useful for
10 years. Prepare Monty’s journal entries to record the purchase of
the patent and 2017 amortization. (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...
Ayayai Corporation owns a patent that has a carrying amount of $250,000. Ayayai expects future net...
Ayayai Corporation owns a patent that has a carrying amount of $250,000. Ayayai expects future net cash flows from this patent to total $200,000. The fair value of the patent is $130,000. Prepare Ayayai's journal entry to record the loss on impairment. (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 O for the amounts.) Account Titles and Explanation Debit Credit
Sunland Corporation owns a patent that has a carrying amount of $648,000. Sunland expects future net...
Sunland Corporation owns a patent that has a carrying amount of
$648,000. Sunland expects future net cash flows from this patent to
total $405,000. The fair value of the patent is $502,200.
Prepare journal entry, if necessary, to record the loss on
impairment. (Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
Brief Exercise 12-1 Pronghorn Corporation purchases a patent from Crane Company on January 1, 2017, for...
Brief Exercise 12-1 Pronghorn Corporation purchases a patent from Crane Company on January 1, 2017, for $50,000. The patent has a remaining legal life of 15 years. Pronghorn feels the patent will be useful for 10 years. Prepare Pronghorn's journal entries to record the purchase of the patent and 2017 amortization. (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...
On June 1, 2015, Grouper spent $17,280 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2015. Prepare all journal entries required in 2015 and 2016. (Round answers to O decimal places, e.g. 8,564. 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 o for the amounts.)...
On June 1, 2018, Sheffield spent $10,440 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2018. Prepare all journal entries required in 2018 and 2019. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit 2018...
On June 1, 2018, Ayayai spent
$10,440 to successfully prosecute a patent infringement suit. As a
result, the estimate of useful life was extended to 12 years from
June 1, 2018. Prepare all journal entries required in 2018 and
2019.
In 2020, Ayayai determined that a competitor’s product would
make the New Age Piano obsolete and the patent worthless by
December 31, 2021. Prepare all journal entries required in 2020 and
2021.
During 2016, Ayayai Corporation spent $175,680 in research...
Please explain
* Question 1 Wildhorse Ltd. purchased a patent on September 1, 2017 for $41,860. At the time of purchase, Wildhorse estimated that the patent's economic benefits would last until the end of 2021 fiscal year. Wildhorse's fiscal year-end is December 31. On April 1. 2020, Wildhorse sold the patent to another company. Prepare the journal entry to record the sale, assuming Wildhorse sold the patent for $21,705. (Credit account titles are automatically indented when amount is entered. Do...
Question 10 Izzy Inc. purchased a patent
for $350,000 which has an estimated useful life of 10 years. Its
pattern of use or consumption cannot be reliably determined.
Prepare the entry to record the amortization of the patent in its
first year of use. (Credit account titles are automatically
indented when the 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.) Account Titles and...
Brief
Exercise 12-1 Monty Corporation purchases a patent from Sandhill
Company on January 1, 2017, for $55,000. The patent has a remaining
legal life of 12 years. Monty feels the patent will be useful for
10 years. Prepare Monty’s journal entries to record the purchase of
the patent and 2017 amortization. (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...
Ayayai Corporation owns a patent that has a carrying amount of $250,000. Ayayai expects future net cash flows from this patent to total $200,000. The fair value of the patent is $130,000. Prepare Ayayai's journal entry to record the loss on impairment. (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 O for the amounts.) Account Titles and Explanation Debit Credit
Sunland Corporation owns a patent that has a carrying amount of
$648,000. Sunland expects future net cash flows from this patent to
total $405,000. The fair value of the patent is $502,200.
Prepare journal entry, if necessary, to record the loss on
impairment. (Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
Account Titles and Explanation
Debit
Credit
Brief Exercise 12-1 Pronghorn Corporation purchases a patent from Crane Company on January 1, 2017, for $50,000. The patent has a remaining legal life of 15 years. Pronghorn feels the patent will be useful for 10 years. Prepare Pronghorn's journal entries to record the purchase of the patent and 2017 amortization. (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...
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