In 2013 thompson determined that a competitors product

Assignment Help Accounting Basics

Reference no: EM13484584

During 2009, a) Thompson Corporation spent $170,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2009, and had a legal life of 20 years and a useful life of 10 years. b) Legal costs of $24,000 related to the patent were incurred as of October 1, 2009.

(1) Prepare all journal entries required in 2009 and 2010 as a result of the transactions above.

(2) On June 1, 2011, Thompson spent $12,400 to successfully prosecute a patent infringement suit. As a result, the estimate of useful life was extended to 12 years from June 1, 2011. Prepare all journal entries required in 2011 and 2012.

(3) In 2013, Thompson determined that a competitor's product would make the New Age Piano obsolete and the patent worthless by December 31, 2014. Prepare all journal entries required in 2013 and 2014.

Reference no: EM13484584

Questions Cloud

What is meant by an internal capital market when would you : what is meant by an internal capital market? when would you expect such a market to add value? when and why would it

Sunder corporation wants to acquire another company but is : sunder corporation wants to acquire another company but is unsure of the best basis to finance the purchase. the

What are horizontal vertical congeneric and conglomerate : what are horizontal vertical congeneric and conglomerate mergers? are the different types of mergers equally likely to

Prepare the entry to record the purchase of terrell : fred graf owner of graf interiors is negotiating for the purchase of terrell galleries. the balance sheet of terrell is

In 2013 thompson determined that a competitors product : during 2009 a thompson corporation spent 170000 in research and development costs. as a result a new product called the

At the beginning of the current season on april 1 the : at the beginning of the current season on april 1 the ledger of flint hills pro shop showed cash 2500 inventory 3500

Midas corporation wants to build a new facility that will : midas corporation wants to build a new facility that will produce a new product line. the company expects the following

Compute the amount to be reported as research and : martinez company incurred the following costs during 2012 in connection with its research and development

You know that the materials price variance is recorded at : the heavenly gifts company a maker of holiday novelties needs your help immediately. the companys accountant resigned

User Account

All Pages