Homework Answers
The cost of successfully defending the patent should be
capitalized or added to the patent account and then amortized over
the years, thus the answer is:
c) capitalized on the patents account
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The cost of successfully defending a patent in an infringement suit should be recognized as a loss in the current p...
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...
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, 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.)...
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 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...
Current Attempt in Progress Pina Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that...
Current Attempt in Progress Pina Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Pina does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history of Pina patent number 758-6002-1A is as follows. Date Activity Cost 2011-2012 Research conducted to develop...
Brief Exercise 12-2 Your answer is partially correct. Try again Sarasota Corporation purchases a patent from...
Brief Exercise 12-2 Your answer is partially correct. Try again Sarasota Corporation purchases a patent from Ivanhoe Company on January 1, 2017 for $72,000. The patent has a remaining legal lide of 16 years. Sarasota feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Sarasota's books is 557,600. In January, Sarasota spends $32.300 successfully defending patent suit. Sarasota still feels the patient will be useful until the...
Culver Corporation purchases a patent from Sunland Company on January 1, 2020, for $78,000. The patent...
Culver Corporation purchases a patent from Sunland Company on January 1, 2020, for $78,000. The patent has a remaining legal life of 16 years. Culver feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Culver’s books is $62,400. In January, Culver spends $25,600 successfully defending a patent suit. Culver still feels the patent will be useful until the end of 2029. Prepare the journal entries to record...
Novak Corporation purchases a patent from Wildhorse Company on January 1, 2020, for $69,000. The patent...
Novak Corporation purchases a patent from Wildhorse Company on January 1, 2020, for $69,000. The patent has a remaining legal life of 16 years. Novak feels the patent will be useful for 10 years. Assume that at January 1, 2022, the carrying amount of the patent on Novak’s books is $55,200. In January, Novak spends $26,400 successfully defending a patent suit. Novak still feels the patent will be useful until the end of 2029. Prepare the journal entries to record...
3 Pina Corporation purchases a patent from Blossom Company on January 1, 2017, for $59,000. The...
3
Pina Corporation purchases a patent from Blossom Company on
January 1, 2017, for $59,000. The patent has a remaining legal life
of 16 years. Pina feels the patent will be useful for 10 years.
Assume that at January 1, 2019, the carrying amount of the patent
on Pina’s books is $47,200. In January, Pina spends $24,000
successfully defending a patent suit. Pina still feels the patent
will be useful until the end of 2026.
Prepare the journal entries to...
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...
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, 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.)...
Current Attempt in Progress Pina Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Pina does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history of Pina patent number 758-6002-1A is as follows. Date Activity Cost 2011-2012 Research conducted to develop...
Brief Exercise 12-2 Your answer is partially correct. Try again Sarasota Corporation purchases a patent from Ivanhoe Company on January 1, 2017 for $72,000. The patent has a remaining legal lide of 16 years. Sarasota feels the patent will be useful for 10 years. Assume that at January 1, 2019, the carrying amount of the patent on Sarasota's books is 557,600. In January, Sarasota spends $32.300 successfully defending patent suit. Sarasota still feels the patient will be useful until the...
3
Pina Corporation purchases a patent from Blossom Company on
January 1, 2017, for $59,000. The patent has a remaining legal life
of 16 years. Pina feels the patent will be useful for 10 years.
Assume that at January 1, 2019, the carrying amount of the patent
on Pina’s books is $47,200. In January, Pina spends $24,000
successfully defending a patent suit. Pina still feels the patent
will be useful until the end of 2026.
Prepare the journal entries to...
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