How much is the patent amortization expense for the year

Assignment Help Accounting Basics
Reference no: EM132700763

Problem 1: Ivashkin Manufacturing Company acquired three patents in January 2020. The patents have different lives as indicated in the following schedule: Patent A costs P125,000, has 10 years remaining useful life and 17 years remaining legal life. Patent B costs 272,500 with 5 years remaining useful life and 7 years remaining legal life. Patent C costs 656,200 with indefinite remaining useful life and 17 remaining legal life. Patent C is believed to be uniquely useful as long as the company retains the right to use it. In June 2020, the company unsuccessfully attempted to defend its right to Patent B. Legal fees of P127,000 were incurred in this action. The company's policy is to amortize intangible assets by the straight-line method to the nearest half-year. The company reports on a calendar-year basis. How much is the patent amortization expense for the year ended December 31, 2020?

Reference no: EM132700763

Questions Cloud

What should be the amortization expense for narek company : In January 2020, Narek paid P250,000 for legal fees in a successful defense of the patent. What should be the amortization expense for 2020?
What is the maximum price an investor : The Sunnyvale Manufacturing Company has had great success since first going public and issuing ordinary shares three years ago. Earnings and dividends
What is the patent carrying value on january : What is the patent carrying value on January 1, 2020? Shafran Food Products, a manufacturer of chocolate drinks, acquired a patent on June 28, 2018
Calculate the price per share of the combined corporation : Vtech Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Vtech Metal is thinking of buying Nissin Steel
How much is the patent amortization expense for the year : The company reports on a calendar-year basis. How much is the patent amortization expense for the year ended December 31, 2020?
What is the role of takeovers in corporate governance : What is the role of takeovers in corporate governance?
Disadvantages of hedging with long-term supply contracts : What are some of the disadvantages of hedging with long-term supply contracts?
What the amortization amount for the intangibles is : The franchise allows the company to be exclusive sales agent for two years effective November 1, 2020. The amortization amount for the intangibles in 2020 is
What is the cost of the franchise acquired on july : The franchisee's credit rating indicates that it can borrow money at `4% for a loan of this type. What is the cost of the franchise acquired on July 1, 2020?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the issuer journal entry to record interest payment

On January 1, Grissom Inc. issued 10-year, Prepare the issuer's journal entry to record the first semiannual interest payment on July 1

  Finlon upholstery inc uses a job-order costing system to

finlon upholstery inc. uses a job-order costing system to accumulate manufacturing costs. the companys work-in-process

  Determine ending inventory cost by average cost method

Determine ending inventory cost by average cost method. In your calculations round per unit to the nearest cent. Round your answer to the nearest whole dollar

  What are the advantages to the acquiring entity

What are the advantages to the shareholders in a target entity that is acquired via taxable stock acquisition vs. a taxable acquisition of net assets? What are the advantages to the acquiring entity?

  What are the most important long-term debts

What are the most important long-term debts based on monetary amount of the company Anthem, Inc. and Molina Health Care? (Using 10-K Information)

  The average cost of a piano from the manufacturer

Scottsdale Fine Piano%u2019s purchases pianos from a well-known manufacturer and sells them through their retail store. The Baby Grand Pianos sell, on average, for $2,500 each.

  What are the total prevention costs for the abrams corp

What are the total prevention costs for the Abrams Corporation? The Abrams Corporation incurred the quality costs for the year ending December 31, 2018.

  Alpha company uses the periodic inventory system

Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016

  Explain the role of ethics in the regulatory environment

Explain the role of ethics in the regulatory environment, Identify one or more regulations that would apply to your selected company.

  Demonstrate the validity of the accounting equation

As you have learned in this week's readings the Accounting Equation is Assets = Liabilities + Owners' Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of t..

  How to determine the stockholders equity as of october

How to Determine the Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $95,680 and liabilities increased by $57,530 during 20Y3.

  Describe the reason for the journal entry

"Roger was the controller for a midsize soft drink bottler and distributor. Roger perpetrated a very simple skimming scheme.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd