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 a transaction/event,
select "No journal entry required" in the first account
field.)
Homework Answers
| January 02, 2018 | Patents | 700000 | ||
| Cash | 700000 | |||
| December 31, 2018 | Amortization expense | 87500 | =700000/8 | |
| Patents | 87500 | |||
| December 31, 2019 | Amortization expense | 87500 | =700000/8 | |
| Patents | 87500 | |||
| January 2020 | Patents | 105000 | ||
| Cash | 105000 | |||
| December 31, 2020 | Amortization expense | 105000 | =(700000-87500-87500+105000)/6 | |
| Patents | 105000 |
Add Answer to:
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 $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...
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?
On January 1, 2021, The Donut Stop purchased a patent for $82,000. At that time, the...
On January 1, 2021, The Donut Stop purchased a patent for $82,000. At that time, the remaining legal life was 15 years, but the company estimated the patent would be useful for only five more years. In late December 2022, the company incurred legal fees of $34,000 in successfully defending the patent in an infringement suit. The successful defense did not change the company's estimate of the patent’s useful life. The Donut Stop's year-end is December 31. 1. Record the...
Cheyenne Corporation purchases a patent from Oriole Company on January 1, 2020, for $64,000. The patent...
Cheyenne Corporation purchases a patent from Oriole Company on January 1, 2020, for $64,000. The patent has a remaining legal life of 16 years. Cheyenne feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Cheyenne’s books is $51,200. In January, Cheyenne spends $37,600 successfully defending a patent suit. Cheyenne still feels the patent will be useful until the end of 2029.
Jaina Corporation purchases a patent from Monty Company on January 1, 2020, for $99,120. The patent...
Jaina Corporation purchases a patent from Monty Company on January 1, 2020, for $99,120. The patent has a remaining legal of 16 years. Jaina feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Jaina's books is $79,296. In January, Jaina spends $23,600 successfully defending a patent suit. Jaina still feels the patent will be useful until the end of 2029. Prepare Jaina's journal entries to record the...
Sandhill Corporation purchases a patent from Wildhorse Company on January 1, 2020, for $100,800. The patent...
Sandhill Corporation purchases a patent from Wildhorse Company
on January 1, 2020, for $100,800. The patent has a remaining legal
of 16 years. Sandhill feels the patent will be useful for 10 years.
Assume that at January 1, 2022, the carrying amount of the patent
on Sandhill's books is $80,640. In January, Sandhill spends $24,000
successfully defending a patent suit. Sandhill still feels the
patent will be useful until the end of 2029.
Prepare Sandhill's journal entries to record the...
Brief Exercise 12-2 Flounder Corporation purchases a patent from Pharoah Company on January 1, 2017, for...
Brief Exercise 12-2 Flounder Corporation purchases a patent from Pharoah Company on January 1, 2017, for $80,000. The patent has a remaining legal life of 16 years. Flounder feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Flounder's books is $64,000. In January, Flounder spends $32,800 successfully defending a patent suit. Flounder still feels the patent will be useful until the end of 2026. Prepare the journal...
Section E: Intangible Assets The following transactions of ASU Corporation occurred at January 1, 2019. Prepare...
Section E: Intangible Assets The following transactions of ASU Corporation occurred at January 1, 2019. Prepare the journal entry needed at January 1 to record this transaction and at December 31, 2019 to record any resultant amortization. If no entry is required, write "no entry needed." 1. On January 1, 2019, ASU's application for a patent was granted. Legal and registration costs incurred were $80,000. The patent legal life is 20 years. The manufacturing process will be useful to ASU...
Question 4 Martinez Products Ltd, purchased a patent on January 1, 2017, for $870,000. At the...
Question 4 Martinez Products Ltd, purchased a patent on January 1, 2017, for $870,000. At the time of the purchase, the patent had a remaining legal life of 15 years. In January, 2020, Martinez spent $28,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 9 years. Martinez's year-end was December 31. Prepare the entries on the books of Martinez...
During 2016, Debbie Company incurred $240,000 in legal fees in defending a patent with a carrying...
During 2016, Debbie Company incurred $240,000 in legal fees in defending a patent with a carrying value of $4,500,000 against an infringement. Debbie's lawyers were not successful with the defense of the patent. The legal fees should be... Select one: a. capitalized and amortized over the remaining economic life or legal life of the patent, whichever is shorter. b. expensed in 2016 and classified as ordinary expenses. c. capitalized and amortized over the remaining legal life of the patent. d....
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...
Jaina Corporation purchases a patent from Monty Company on January 1, 2020, for $99,120. The patent has a remaining legal of 16 years. Jaina feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Jaina's books is $79,296. In January, Jaina spends $23,600 successfully defending a patent suit. Jaina still feels the patent will be useful until the end of 2029. Prepare Jaina's journal entries to record the...
Sandhill Corporation purchases a patent from Wildhorse Company
on January 1, 2020, for $100,800. The patent has a remaining legal
of 16 years. Sandhill feels the patent will be useful for 10 years.
Assume that at January 1, 2022, the carrying amount of the patent
on Sandhill's books is $80,640. In January, Sandhill spends $24,000
successfully defending a patent suit. Sandhill still feels the
patent will be useful until the end of 2029.
Prepare Sandhill's journal entries to record the...
Brief Exercise 12-2 Flounder Corporation purchases a patent from Pharoah Company on January 1, 2017, for $80,000. The patent has a remaining legal life of 16 years. Flounder feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Flounder's books is $64,000. In January, Flounder spends $32,800 successfully defending a patent suit. Flounder still feels the patent will be useful until the end of 2026. Prepare the journal...
Section E: Intangible Assets The following transactions of ASU Corporation occurred at January 1, 2019. Prepare the journal entry needed at January 1 to record this transaction and at December 31, 2019 to record any resultant amortization. If no entry is required, write "no entry needed." 1. On January 1, 2019, ASU's application for a patent was granted. Legal and registration costs incurred were $80,000. The patent legal life is 20 years. The manufacturing process will be useful to ASU...
Question 4 Martinez Products Ltd, purchased a patent on January 1, 2017, for $870,000. At the time of the purchase, the patent had a remaining legal life of 15 years. In January, 2020, Martinez spent $28,000 successfully defending the patent in court. One of the other results of the court case was the discovery that the patent would only have a remaining useful life of 9 years. Martinez's year-end was December 31. Prepare the entries on the books of Martinez...
Most questions answered within 3 hours.
-
1,1-dimethylcyclorohexane reacts with single bromine atom
asked 3 minutes ago -
The completed Lewis structure of CO2 contains a total
of 0,1,2,3,4,5,6,7,8 covalent bonds
and 0,1,2,3,4,5,6,7,8 lone pairs.
NOTE:...
asked 10 minutes ago -
A 0.0510 M solution of an organic acid has an
[H+] of 7.50×10-4M .
What is...
asked 7 minutes ago -
what is the profit-maximizing output condition that a
monopolistically competitive firm must satisfy? a) price charged...
asked 11 minutes ago -
Consider the set of ordered pairs shown below. Assuming that the
regression equation is y=3.513+0.429x and...
asked 33 minutes ago -
1. (A) Write two
structural (constitutional)
isomers of C4H8F2?
Please show all of
the
asked 35 minutes ago -
Objective: Practice converting a Boolean logic
expression into it’s truth table and to show the implementation...
asked 32 minutes ago -
1) Name the three holes located in the greater wing of the
sphenoid bone in order...
asked 36 minutes ago -
For the following reaction set-up, which type of hydrocarbon
product would form? 1,4-hexadiene + two Cl2...
asked 38 minutes ago -
Consider the following method that is intended to determine if
the double values d1 and d2...
asked 50 minutes ago -
could someone please post clear drawings of the three structures
in the equilibrium mixture of D-glucose...
asked 57 minutes ago -
Using the Properties of Order show that 5n5 +
4n4 + 6n3 + 2n2+ n +...
asked 1 hour ago