What is journal entry to record impairment of its tradename

Assignment Help Managerial Accounting
Reference no: EM132856249

Question - The Lionell Company acquired several small companies at the end of the year. Based on the acquisition, the company reported the following intangible assets on its December 31, 2017 balance sheet:

Patent $35,000

Tradename $40,000

Goodwill $125,000

A) The company's accountant determined the patent has an expected life of 10 years and no expected residual value and that it will generate approximately equal benefits each year. The company expects to use the tradename for the foreseeable future. How much amortization expense should the company recognize on each intangible asset in 2017?

B) In 2018, the company has determined that the tradename is impaired because of a change in market conditions. It estimates the tradename has a fair value of 20,000 at the end of 2018. What is journal entry to record the impairment of its tradename?

Reference no: EM132856249

Questions Cloud

Test the claim that the percentage of uninsured patients : At the 0.05 level is there enough to support the director's claim? State the null and alternative hypotheses. One tail or two tailed.
Probability that four of them buy something : Suppose 15 customers visit the store. The probability that four of them buy something is 0.7032.
Why has been beneficial or detrimental to humanity : What are the ethical policies of company with respect to the positions offered and education levels of the employees? Why has been beneficial or detrimental
How many possibilities are there for fred schedule of dinner : (a) How many possibilities are there for Fred's schedule of dinners for that Monday through Friday, if Fred is not willing to eat at the same restaurant more th
What is journal entry to record impairment of its tradename : It estimates the tradename has a fair value of 20,000 at the end of 2018. What is journal entry to record the impairment of its tradename
Describe process of decision making and innovation : Describe the process of decision making and innovation? How do companies keep the balance of managing risk while continuously innovating?
How is software development process different from software : How is a software development process different from software modeling? Explain how one helps the other in creating quality software.
Discuss one real organization that has been effective : Discuss at least one real organization that has been effective with implementing an ERM framework or /application. What is Important for an effective ERM?
Find the profitability index of the project : Trovato Corporation is considering a project that would require an investment of $48,000. Find the profitability index of the project

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What behavioral problems that occur amongst senior managers

What are some behavioral problems that may occur amongst senior managers, as a result of unsatisfactory returns from a bonus pool, in a firm.

  Cash conversion cycles for edison company

Edison Inc. has annual sales of $49,000,000, or $44,100,000 a day on a 365-day basis. The firm's cost of goods sold are 75% of sales. On average, the company has $9,000,000 in inventory and $8,000,000 in accounts receivable.

  Allocate the costs of the administration department

Allocate the costs of the Administration Department first on the basis of employee-hours and then the costs of the Building Services Department on the basis of space occupied.

  Why are the allocated fixed manufacturing overhead costs

Why are the Allocated fixed manufacturing overhead costs excluded when determining the pricing of a special order? Are committed costs always relevant

  Find what is the present value of stream of cash flows

If Wally requires a return of 10.2%, what is the present value of this stream of cash flows? He has a potential franchise agreement that would allow.

  Explain why companies are concerned about the financial

Explain why companies are concerned about the financial viability of suppliers and customers.

  What was the capital gain of the tips in dollars

At the beginning of this year, the CPI was 199.20 and was at 204.30 at the end of the year. What was the capital gain of the TIPS in dollars

  Give a comparative computation for economic profit

Give a comparative computation for economic profit and accounting profit. Imagine that two years after your college degree your annual salary as an assistant

  What was the net markdown percent for november

For the month of November, the Pepe Department Store had net sales of $8400.00 and markdowns of $272.00. What was the NMD% for November?

  Determine which is not a disadvantage of residual income

Which is NOT a disadvantage of Residual Income as a performance measure? Residual Income cannot be used as a relative performance measure

  Calculate the predetermined overhead rate per direct labour

Calculate the predetermined overhead rate per direct labour hour. Calculate the total overhead costs that would be assigned to the order for box A52

  Classify each menu item based on their profitability

Based on the information given in the table above, classify each menu item based on their profitability and popularity results for Lai Lai RESPECTIVELY.

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