Determine the patent book value on december

Assignment Help Cost Accounting

Reference no: EM13900306

During the first half of 2006, Hi-Def Electronics Company spent $450,000 on research and development efforts that resulted in a new product invention. During June, Hi-Def incurred $50,000 to prepare a patent application and an additional $10,000 for legal fees associated with a patent search, resulting in a pending patent award on July 1, 2006. Management expects the patent to have a life of 12 years. During December 2006, the patent was successfully defended in a legal proceeding which cost $149,500.

a. Record the year-end adjusting journal entry for patent amortization on December 31, 2006.

b. Determine the patent book value on December 31, 2006.

c. Record the year-end adjusting journal entry for patent amortization on December 31, 2007.

Reference no: EM13900306

Questions Cloud

What is carl mpc : Assume that Carl and Wanda each make $40,000. Each was given a raise of $4,000. Carl's spending increased from $40,000 to $43,000. Wanda's savings increased from $1,000 to $2,000.

Replace an obsolete machine press : Our company must replace an obsolete machine press. We have two bids that are summarized below. Both of the presses fall into the MACRS 5 year property classification. Our company uses an after tax MARR of 12% and MACRS depreciation. Our company fall..

Determine the optimal size of the shopping center : Determine the optimal size of the shopping center (to the nearest 100 square meters) based on existing estimates of the demand for retail space.

The distribution of cash in each of the following : Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows.

Determine the patent book value on december : Record the year-end adjusting journal entry for patent amortization on December 31, 2006. Determine the patent book value on December 31, 2006.

Prepare the entry to close the firm income : Mark Albin, Roland Peters and Sam Ramsey invested $ 164,000, $ 98,400 and $ 65,600, respectively, in a partnership. During its first calendar year, the firm earned $ 270,000.

Melon enterprise is a commercial real estate developer. : Pat tells you that Melon is thinking about leasing a parcel of land to build a shopping center. Melon would own and operate the shopping center and generate revenue by renting space to retailers. Pat would like you to do some work on the project. Spe..

Determine the book value of the goodwill on december : Determine the book value of the goodwill on December 31, 2007, prior to making the im- pairment adjusting entry. Record the goodwill impairment adjusting entry for December 31, 2007.

Determine the patent amortization expense for current year : Determine the patent amortization expense for the current year ended December 31, 2007. Journalize the adjusting entry to recognize the amortization.

User Account

All Pages