Palmiero purchased a patent from vania co for 1500000 on

Assignment Help Accounting Basics

Reference no: EM13599091

Presented below is selected information for Palmiero Company.

1. Palmiero purchased a patent from Vania Co. for $1,500,000 on January 1, 2008. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2018. During 2010, Palmiero determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2010?

2. Palmiero bought a franchise from Dougherty Co. on January 1, 2009, for $350,000. The carrying amount of the franchise on Dougherty's books on January 1, 2009, was $500,000. The franchise agreement had an estimated useful life of 30 years. Because Palmiero must enter a competitive bidding at the end of 2018, it is unlikely that the franchise will be retained beyond 2018. What amount should be amortized for the year ended December 31, 2010?

3. On January 1, 2008, Palmiero incurred organization costs of $275,000. What amount of organization expense should be reported in 2010?

4. Palmiero purchased the license for distribution of a popular consumer product on January 1, 2010, for $150,000. It is expected that this product will generate cash flows for an indefinite period of time. The license has an initial term of 5 years but by paying a nominal fee, Palmiero can renew
the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2010?

Reference no: EM13599091

Questions Cloud

Desmond drury and ty wilkins have decided to form a : desmond drury and ty wilkins have decided to form a partnership. they have agreed that drury is to invest 20000 and

The trenshaw transportation company uses a responsibility : the trenshaw transportation company uses a responsibility reporting system to measure the performance of its three

On june 1 2009 kevin schmidt and david cochran form a : on june 1 2009 kevin schmidt and david cochran form a partnership. schmidt agrees to invest 12000 cash and merchandise

Prevatte corporation purchases potatoes from farmers the : prevatte corporation purchases potatoes from farmers. the potatoes are then peeled producing two intermediate products

Palmiero purchased a patent from vania co for 1500000 on : presented below is selected information for palmiero company.1. palmiero purchased a patent from vania co. for 1500000

Product a requires 5 machine hours per unit to be produced : product a requires 5 machine hours per unit to be produced product b requires only 3 machine hours per unit and the

Mack hi im mack my best friend peter charles aka pc and i : mack hi im mack. my best friend peter charles aka pc and i have been best friends for 10 years. both of us have an

The tingey company has 400 obsolete microcomputers that are : the tingey company has 400 obsolete microcomputers that are carried in inventory at a total cost of 576000. if these

The new equipment will cost 300000 and a one-time cost of : gramling inc. is considering an investment in new operating equipment with a 15-year life. the new equipment will cost

User Account

All Pages