What is the amortization expense for the year

Assignment Help Accounting Basics
Reference no: EM133188982

Question - Sydney, Inc., a manufacturer of chocolate-coated mint candy acquired a patent on June 25, 2018 for P720,000. Management expects that the patent will be useful to the company for its remaining useful life of 10 years. On January 10, 2020, the company spent P120,000 in successfully defending the patent against a competitor. During 2021, management determines that the estimated remaining life of the patent should be reduced to only five years, including the current year. The company's policy is to amortize the cost of Intangible assets using straight-line method to the nearest month.

Required - What is the amortization expense for the year 2021?

Reference no: EM133188982

Questions Cloud

Prepare the Income Statement for the year ended June : Depreciation on the machinery & equipment for 1 year is $12,000. Prepare the Income Statement for the year ended 30th June 2021
Identify the external compliance program for heath care : Identify the external compliance program aspects that you recommend your health care organization should adopt,corporate social responsibility in your response
Critically appraise the significance of strategic management : Critically appraise the significance of strategic management and decision making to the performance of a selected multinational organisation and apply
Identify potential causes using ob concepts and theories : Identify potential causes using OB concepts and theories and make recommendations and take action
What is the amortization expense for the year : Sydney, Inc., a manufacturer of chocolate-coated mint candy acquired a patent on June 25, 2018 for P720,000. What is the amortization expense for the year
How much is the gain on sale of equipment : On January 1, 2018, Alan Company purchased an equipment for P8,000,000. How much is the gain (loss) on sale of equipment
What innovative idea did frederick smith develop : How does FedEx illustrate the link between creativity and critical thinking, Discuss your answers with another small group to compare your ideas
What is the carrying amount of the computer : On December 31, 2021, the software had a net realizable value of P4,500,000. What is the carrying amount of the computer software on December 31, 2021
Write about the criminal justice concepts : Describe the background/context of the issue(s) addressed in this article Racist Massacre Survivor Urges Hate Crimes Law in S Carolina

Reviews

Write a Review

Accounting Basics Questions & Answers

  Clay mix in beginning inventory

Clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Lester has 2,600 pounds of clay mix in beginning inventory and wants to have 3,000 pou..

  Bronson industries reported a deferred tax liability

Determine the effect of the change and prepare the appropriate journal entry to record Bronson's income tax expense in 2011. What adjustment, if any, is needed to revise retained earnings as a result of the change?

  Perform a variance analysis of the massage

Suppose you are the senior controller for Spine Line and you plan to perform a variance analysis of the massage chairs manufactured to determine if the standards are being met.

  Determine times interest earned ratio

Income before income tax expense was $3,000,000, and income taxes were $1,200,000 for the current year. Determine times interest earned ratio

  Prepare the journal entry to record amortization expenses

Prepare the Journal entry to record amortization expenses for 2018 related to the copyrights

  Compute the working capital and the current ratio

Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns

  What the entry or entries gideon makes to record recovery

What the entry or entries Gideon makes to record the recovery of the bad debt is? Gideon Company uses the direct write-off method

  Analyzing data obtained from semi-structured interviews

Distinguish between explanatory sequential mixed methods and exploratory sequential mixed methods explaining when each type of research design might be appropriate.

  The actual price per pound of direct materials purchased

Morro Bay Surfboards manufactures fiberglass surfboards. The standard cost of direct materials and direct manufacturing labor is $225 per board. This includes 30 pounds of direct materials, at the budgeted price of $3 per pound, and 9 hours of dir..

  Does CustomTee have an enforceable contract

CustomTee's normal accounting policy requires a written and signed sales agreement. Does CustomTee have an enforceable contract

  Journalize the adjusting entry to record the depreciation

The estimated amount of depreciation on equipment for the current year is $11,500. Journalize the adjusting entry to record the depreciation

  Entry to assign overhead to production

At Ace Company, overhead is assigned to production departments at the rate of $5 per machine hour. In July, machine hours were 3,000 in the Machining Department and 2,400 in the Assembly Department. Prepare the entry to assign overhead to producti..

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