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?

User Account

All Pages