5. Barkley Corp. obtained a tradename in January 2024, incurring legal costs of $72,000. The company amortizes the tradename over 8 years using the straight-line method. Barkley successfully defended its tradename in January 2025, incurring $19,600 in legal fees. At the beginning of 2026, based on new marketing research, Barkley determines that the fair value of the tradename is $60,000. Estimated future net cash flows from the tradename are $64,000 on January 4, 2026.
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- Firoz Corp. obtained a trade name in January 2010, incurring legal costs of SAR15,000. The company amortizes the trade name over 8 years. Firoz, successfully defended its trade name in January 2011, incurring SAR 4,900 in legal fees. At the beginning of 2012, based on new marketing research, Firoz determines that the recoverable amount of the trade name is SAR 12.000. Required: a. Prepare the necessary journal entries on amortization for the years ending December 31, 2010 & 2011.. b. In 2012, will Firoz meet any impairment loss? If yes, prepare journal entry to record the impairment loss and amortization entry on 31st Dec 2012In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of P160,000. Based on new market research, HUMID determines that the market value of the trade name is P120,000. In January 2021, HUMID incurred P7,800 of legal fees in a successful defense of its trade name. Trade name should be amortized based on legal life. What is the cost of Tradename? P120,000 P160,000 P280,000 O P167,800On January 1, 2024, Weaver Corporation purchased a patent for $243,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2026, the company incurred legal fees of $63,000 in successfully defending a patent infringement sult. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. Required: 1. Record the purchase in 2024; amortization in 2024; amortization in 2025; legal fees in 2026; and amortization in 2026. 2. What is the balance in the Patent account at the end of 2026? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Record the purchase in 2024; amortization in 2024; amortization in 2025; legal fees in 2026; and amortization in 2026. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
- Sandhill Corporation purchased a patent for $147000 on September 1, 2024. It had a useful life of 10 years. On January 1, 2026, Sandhill spent $41000 to successfully defend the patent in a lawsuit. Sandhill feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense at the company's December 31, 2026 year-end if the straight-line method is used? O $25480. O $33680. O $31720. O $34660.On January 2, 2024, David Corporation purchased a patent for $510,000. The remaining legal life is 10 years, but the company estimated that the patent will be useful only for six years. In January 2026, the company incurred legal fees of $60,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Required: Prepare journal entries related to the patent for 2024, 2025, and 2026. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 Date January 02, 2024 3 Record the purchase of the patent. Note: Enter debits before credits. Record entry 4 5 General Journal Clear entry Debit Credit View general JournalOn January 1, 2024, Weaver Corporation purchased a patent for $234,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2026, the company incurred legal fees of $54,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. Required: 1. Record the purchase in 2024; amortization in 2024; amortization in 2025; legal fees in 2026; and amortization in 2026. 2. What is the balance in the Patent account at the end of 2026? Complete this question by entering your answers in the tabs below. Required 1 Required 2 13 Record the purchase in 2024; amortization in 2024; amortization in 2025; legal fees in 2026; and amortization in 2026. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry…
- March 2025, Wyoming Company filed a suit against DC Company seeking P2,000,000 damages for patent infringement. A court decision on November 2025 awarded Wyoming Company P1,750,000 in damages. DC Company motioned to appeal the decision which was expected to be resolved within 2026. Wyoming Company’s counsel believed it is probable that it will be successful against DC Company for an estimated amount ranging from P1,400,000 to P1,750,000, which P1,500,000 as the most likely amount. The amount reported in Wyoming Company’s 2025 statement of profit or loss statement isBarkley Corp. obtained a trade name in January 2016, incurring legal costs of $82,000. The company amortizes the trade name over 8 years. Barkley successfully defended its trade name in January 2017, incurring $19,000 in legal fees. At the beginning of 2018, based on new marketing research, Barkley determines that the fair value of the trade name is $60,000. Estimated future net cash flows from the trade name are $62,000 on January 4, 2018. I. Instructions Prepare the necessary journal entries for the years ending December 31, 2016, 2017, and 2018. Show all computations.On January 1, 2021, Weaver Corporation purchased a patent for $237,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2023, the company incurred legal fees of $57,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Weaver Corporation’s year-end is December 31. Required: 1. Record the purchase in 2021; amortization in 2021; amortization in 2022; legal fees in 2023; and amortization in 2023. 2. What is the balance in the Patent account at the end of 2023?
- On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2023, the company incurred legal fees of $51,000 in successfully defending a patent infringement suit. The successful defense did not change the company’s estimate of useful life. Weaver Corporation’s year-end is December 31. Required: 1. Record the purchase in 2021; amortization in 2021; amortization in 2022; legal fees in 2023; and amortization in 2023. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)On January 1, 2024, Weaver Corporation purchased a patent for $264,000. The remaining legal life is 20 years, but the company estimates the patent will be useful for only six more years. In January 2026, the company incurred legal fees of $84,000 in successfully defending a patent infringement suit. The successful defense did not change the company's estimate of useful life. Weaver Corporation's year-end is December 31. Required: 1. Record the purchase in 2024; amortization in 2024; amortization in 2025; legal fees in 2026; and amortization in 2026. 2. What is the balance in the Patent account at the end of 2026? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the balance in the Patent account at the end of 2026? Balance in the Patent accountKatana Company purchased a patent on January 1, 2014 for P6,000,000. The original life was estimated to be 15 years. However, in December 2019, Iceberg's controller received information proving conclusively that the product protected by the Katana patent would be obsolete within five years. Accordingly, the entity decided to write off the unamortized cost of the patent over five years beginning in 2019. 5. How much would be the patent amortization for the year 2019? a. 1,200,000 b. 1,000,000 c. 800,000 d. 400,000 IAS 36 Breathless Company acquired equipment on January 1, 2018 for P5,000,000. The equipment had a 10-year useful life and no residual value. On December 31, 2019, the following information was obtained: Expected value of undiscounted cash flows Fair value estimated with in-use premise 3,600,000 3,700,000 Fair value estimated with in-exchange premise 3,500,000 6. What amount should be recognized as impairment loss for 2019? a. 300,000 b. 400,000 c. 500,000 d. Silver Company…