Blue Incorotation has a patent that will expire at the end of 2025. They spent $100,000 to successfully prosecute an infringement suit on July 1, 2018. The carrying value of this patent before the litigation is $300,000. Write journal entries to record for these activities.
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- Blue Incorotation has a patent that will expire at the end of 2025. They spent $100,000 to successfully prosecute an infringement suit on July 1, 2018. The carrying value of this patent before the litigation is $300,000. Write journal entries to record for these activities.The Western Company, a company that follows IFRS, provided you with the following information about a number of transactions that took place in 2020: On January 1, 2020 Western acquired a patent for $45,000 cash. The patent expires on January 1, 2028, but the company determined that it will generate future benefits for 6 years from the date of acquisition. During 2022, the total useful life of the patent was revised to 4 years. During March 2020, The Wester Company invested $120,000 in research costs about a new product that it aims to develop in 2021. The amount was paid in cash. The Western Company estimates that its internal goodwill is worth $980,000 in July 2020. Required- Prepare the journal entries related to the patent from January 1, 2020 to December 31, 2022. Prepare the journal entries for 2 and 3. If no journal entry is required, justify why.Sheridan Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $323,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. (b) The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $113,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
- Using the information below for Baxter Corporation, prepare all necessary journal entries ONLY on December 31, 2021, 2022, and 2023. If no entry is needed, write “No entry.” (Dates are all correct!!) Show all computations below. • Baxter Corporation purchases a copyright in January 2020 for $500,000, incurring legal costs of $50,000. The copyright has a legal life of 25 years and an estimated useful life of 10 years. • In January 2022, Baxter successfully defended its copyright, incurring $75,000 in legal fees. The estimated useful life remains the same. • During 2023, based on new marketing research, Baxter determines that the fair value of the copyright is $400,000. Estimated total future cash flows from the copyright are $425,000. Record any impairment loss and adjusting entry on December 31, 2023. No change in estimated useful life.On January 1, 2022, Scarlet registered a patent for a total registration and legal cost of P800,000. Scarlet estimates that the patent has a remaining useful life of 25 years. How much will be the carrying amount of the patent in December 31, 2024?Taylor Swift Corporation purchases a patent from Salmon Company on January 1, 2025, for $54,000. The patent has a remaining legal life of 16 years. Taylor Swift estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Taylor Swift's journal entries to record the purchase of the patent and 2025 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Patents cash (To record purchase of patents) Amortization Expense Patents (To record amortization of patents) Debit 24,000 8400 Credit 24,000 24,000
- Gansac Publishing Company signed a contract with an author to publish her book. The signing took place on January 1, 2019, and a payment of $20,000 was made to obtain a copyright. Gansac expects to sell 200,000 books evenly between 2019 and 2023 at a price of $10 per book. Required: 1. Prepare journal entries to record the events related to the copyright and sales of the book during 2019 and 2020, assuming that sales were as projected. 2. Next Level How would your answer change if Gansac expected sales of the book to be 100,000 copies in 2019, 80,000 copies in 2020, and 20,000 copies over the remainder of the copyright’s useful life?BVC, Inc. may be in a legal fight this coming year. Facts of a certain matter indicate they may have a case against BSN, Inc. for patent infringement. If they win, they could receive $111,000,000. It's a probability. Record the appropriate journal entry, if required, for BVC prior to any actual receipt of an award. Note: Make sure to format your entries properly, whether you are using a table or plain text entry.Hello Corporation purchased a patent for $90,000 on September 1, 2020. It had a useful life of 10 years. On January 1, 2022, Hello spent $22,000 to successfully defend the patent in a lawsuit. Hello feels that as of that date, the remaining useful life is 5 years. Calculate the amount that should be reported for patent amortization expense for 2022.
- Ruby Ltd. purchased a patent for $450,000 on September 1, 2020. It had a useful life of 10 years. On January 1, 2022, Ruby spent $220,000 to successfully defend the patent in a lawsuit. Ruby feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2022? $The Western Company, a company that follows IFRS, provided you with the following information about a number of transactions that took place in 2020: 1) On January 1, 2020 Western acquired a patent for $45,000 cash. The patent expires on January 1, 2028, but the company determined that it will generate future benefits for 6 years from the date of acquisition. During 2022, the total useful life of the patent was revised to 4 years. 2) During March 2020, The Wester Company invested $120,000 in research costs about a new product that it aims to develop in 2021. The amount was paid in cash. 3) The Western Company estimates that its internal goodwill is worth $980,000 in July 2020. Required- a) Prepare the journal entries related to the patent from January 1, 2020 to December 31, 2022. b) Prepare the journal entries for 2 and 3. If no journal entry is required, justify why.Ayayai Corporation purchases a patent from Blossom Company on January 1, 2025, for $63,000. The patent has a remaining legal life of 14 years. Ayayai estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Ayayai's journal entries to record the purchase of the patent and 2025 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of patents) (To record amortization of patents) Debit Credit