Calculate the amortization of the patent

Assignment Help Financial Accounting

Reference no: EM13177594

Track Town Co. had the following transactions involving intangible assets:

Jan. 1 Purchased a patent for leather soles for $10,000 and estimated its useful life to be 10 years.

Apr. 1 Purchased a copyright for a design for $15,000 with a life left on the copyright of 25 years. The estimated remaining (economic) life of the copyright is five years.

July 1 Purchased a trademark at a cost of $50,000. The estimated economic life of the trademark is 25 years. However, conservatism suggests it should be written off in five years.

REQUIRED

1. Using the straight-line method, calculate the amortization of the patent, copyright, and trademark.

2. Prepare general journal entries to record the end-of-year amortizations.

Reference no: EM13177594

Questions Cloud

Define the variables : How many days would the company have to operate each factory in order to fill an order for exactly 500 baseline and 325 GT cars?

What value should land be recorded in easy repair service : On June 10, Easy Repair Service extended an offer of $95,000 for land that ha been priced for sale at $118, 500.

Plot the point on a polar coordinate system : Consider the polar point P(sqrt2, pi/4)

What is the expenditure function : Consider the indirect utility function: v(p1; p2; m) = m /(p1 + p2) a. Derive the Marshallian demand functions. b. What is the expenditure function? c. What is the direct utility function?

Calculate the amortization of the patent : Calculate the amortization of the patent, copyright, and trademark and prepare general journal entries to record the end-of-year amortizations.

Derive the marshallian demand functions : A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function: u(x1; x2) = 1 - (x1 4)^2 - (x2 3)^2

What value should the company capitalize the building : At what value should the company capitalize the building and would your answer change if the bid from the outside contractor had been $80,000? $60,000?

Find for what values of p1/p2 will the optimum : A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function: u(x1; x2) = min {2x1 + x2; x1 + 2x2}

Compute the amount of interest costs capitalized each year : If it is assumed that the production complex has an estimated life of 20 years and a residual value of zero, compute the straight-line depreciation in 2010.

User Account

All Pages