Calculate the amortization expense

Assignment Help Finance Basics

Reference no: EM1355201

A patent was acquired by Grotius Corporation on January 1, 2000, at a cost of $72,000. The useful life of the patent was estimated to be 10 years. At the beginning of 2004, Grotius spent $9,000 in successfully prosecuting an attempted infringement of the patent. At the beginning of 2005, Grotius purchased a patent for $25,000 that was expected to prolong the life of its original patent for 5 additional years. On July 1, 2008, a competitor obtained rights to a patent that made the company's patent obsolete. Grotius records amortization expense directly with a credit to the Patent account.

Instructions
Calculate the following amounts for Grotius Corporation.
(a) Amortization expense for 2000.
(b) The balance in the Patent account at the beginning of 2004, immediately after the infringement suit.
(c) Amortization expense for 2004.
(d) The balance in the Patent account at the beginning of 2005, after purchase of the additional patent.
(e) Amortization expense for 2005.
(f) The amount of loss recorded at July 1, 2008.

Reference no: EM1355201

Questions Cloud

Triggers important in database systems : What are triggers used for, and why are they important in database systems? Provide an example of a situation where a trigger would be appropriate.

Situations and rationales for the test : Last provide a description for how each test would be used in certain situations and provide rationales for the use of each test in the situations described.

Organizational function at microsoft : Organizational Function at Microsoft - Evaluate how the organizational functions of Human Resources and Operations impacts the organizational structure of Microsoft.

What is the net force exerted on the skier : Two 10 cm-diameter charged thin rings face each other, 20 cm apart. The left ring is charged to 20 nC and the right ring is charged to +20 nC. What is the electric field.

Calculate the amortization expense : A patent was acquired through Grotius Corporation on January 1, 2000, at a cost of $72,000. The useful life of the patent was estimated to be ten years.

Critical thinking skills and decision making : Provide an example of an organizational decision that would have benefited from using CT tools and techniques. Explain your reasoning.

Solve equations and show that no solution exists : Solve the following equations for x and y or show that no solution exists. Show your work (in particular, what division must you carry out to solve each case). (i) 5x + 23 6 mod 47

Description of xyz company : Description of XYZ Company - explain how you would present the data and make recommendations.

Explain what are the positives and negatives of basing : Explain What are the positives and negatives of basing your hiring decision on "fit" or on KSA andWould you want to be hired based on fit or KSA?

User Account

All Pages