Drexler incurred P234,000 of experimental and development costs in its laboratory to develop a patent which was granted on January 2, 20x4. Legal fees and other costs associated with registration of the patent totaled P49,200. Management estimates that the useful life of the patent will be eight (8) years. 7. What is the carrying amount of the patent on December 31, 20x4?

Drexler incurred P234,000 of experimental and development costs in its laboratory to develop a patent which was granted on January 2, 20x4. Legal fees and other costs associated with registration of the patent totaled P49,200. Management estimates that the useful life of the patent will be eight (8) years. 7. What is the carrying amount of the patent on December 31, 20x4?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PB: For each of the following unrelated situations, calculate the annual amortization expense and...

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During 2022, Brownie Company incurred research and development cost of P272,000 relating to the patent that was granted on July 1, 2022. Cost of registering the patent is P68,000. The patent legal life is 20 years. However, the management expected that the patent will be useful for 10 years only. On December 31, 2022, what amount should be reported as patent, net of accumulated amortization?
On January 1, Year 1, Stiller Company paid $192,000 to obtain a patent. Stiller expected to use the patent for 5 years before it became technologically obsolete. The remaining legal life of the patent was 8 years. Based on this information, what is the amount of amortization expense during Year 3 and the book value of the patent as of December 31, Year 3, respectively? Multiple Choice O $24,000 and $72,000 $24,000 and $120.000 $38,400 and $76,800 $38,400 and $115,200
CP, Inc.. purchases a patent on January 1, 20X1, for $40,000 and the patent has an expected useful life of five years with no residual value. Assuming CP. uses the straight-line method, what is the carrying value of the patent on December 31, 20X2?
In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years.In 20x4, G Co. started to develop a new improved patent to extend the life of the old patent. Development costs totaled P800,000. How much is the carrying amount of the patent on December 31, 20x4? Your answer In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years. How much is the carrying amount of the patent on December 31, 20x2? Your answer
May I ask for help with this question? I got an answer of 28,750 (Rounded Up) Please check. In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years. In 20x4, G Co. started to develop a new improved patent to extend the life of the old patent. Development costs totaled P800,000. On January 1, 20x5, the new patent was completed and legal and registration costs incurred to register the new patent amounted to P320,000. It was estimated that the new patent will extend the life of the old patent by another 20 years starting January 1, 20x5. How much is the amortisation expense in 20x5?
On January 1, 20x1, Entity A purchases a patent from Entity B for 300,000. Entity B, has helped the patent for 5 years. Entity A estimates that the patent has a remaining useful life of 16 years.How much is the annual ammortization expense?What is the carrying amount of the patent at December 31, 20x2?Show your solutions with explanation if possible.
Questions #28-29 are based on the information below: On January 1, 2021, The Donut Stop purchased a patent for $80,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only five more years. 28. The entry to record the 2021 amortization expense for the patent should include: A. Debit Patents for $16,000 B. Debit Amortization Expense for $16,000 C. Debit Amortization Expense for $4,000 D. Debit Patents for $4,000 29. What should be recorded on the balance sheet for Patents at December 31, 2022? A. $80,000 B. $64,000 C. $72,000 D. $48,000
a. A patent purchased this year from Miller Co. on January 1 for a cash cost of $1,600. When purchased, the patent had an estimated life of 8 years. b. A trademark was registered with the federal government for $10,000. Management estimated that the trademark could be worth as much as $240,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $42,000. The rights are expected to have a six-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Compute the amortization of each intangible for the current year ended December 31. (Do not round intermediate calculations.) Amortization…
May I ask for help with this question? I got an answer of 285,000 (Rounded Up) Please check. In 20x1, G Co. started to develop a patent. Total costs incurred during the year amounting to P400,000. On January 1, 20x2, the patent was fully developed. Legal and registration cost incurred in registering the patent amounted to P300,000. It was estimated that the patent has a useful life of 25 years. How much is the carrying amount of the patent on December 31, 20x2?
Proton Company purchased a new equipment on a deferred payment basis. A down payment of P50,000 was made and four monthly installments of P125,000 are to be made at the end of each month. The cash equivalent price of the machine was P475,000. The company incurred and paid installation costs amounting to P15,000. At what amount shall the equipment be capitalized? a. P565,000 b. P490,000 c. P475,000 d. P550,000
Bilmoco Company purchased a new machine on a deferred payment basis. A down-payment of P100,000 was made and 4 monthly installments of P250,000 are to be made at the end of each month. The cash equivalent price of the machine was P950,000. The entity incurred and paid installation costs amounting to P30,000. What is the amount to be capitalized as cost of the machine?
Provide the necessary accounting entries: A patent right is acquired July 1,2021, for P250,000; while it has a legal life of 15 years, due to rapidly changing technology, management estimates a useful life of only five years. "Netting" method, straight-line amortization will be used. At January 1, 2022, management is uncertain that the process can actually be made economically feasible, and decides to write down the patent to an estimated market value of P75,000. Amortization will be taken over three years from that point. On January 1, 2024, having perfected the related production process, the asset is now appraised at a depreciated replacement cost of P300,000. Furthermore, the estimated useful life is now believed to be six more years.