Murphy Printers (MP) manufactures printers. Assume that MP recently paid $500,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years. 1. Assuming the straight -line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year.
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Murphy Printers (MP) manufactures printers. Assume that MP recently paid $500,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years.
1. Assuming the straight -line method of amortization, make
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- For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a ten-year remaining legal life was purchased for $300,000. The patent will be usable for another eight years. B. A patent was acquired on a new smartphone. The cost of the patent itself was only $24,000, but the market value of the patent is $600,000. The company expects to be able to use this patent for all twenty years of its life.Calico Inc. purchased a patent on a new drug. The patent cost $21,000. The patent has a life of twenty years, but Calico only expects to be able to sell the drug for fifteen years. Calculate the amortization expense and record the journal for the first-year expense.Calico Inc. purchased a patent on a new drug it created. The patent cost $12,000. The patent has a life of twenty years, but Calico expects to be able to sell the drug for fifty years. Calculate the amortization expense and record the journal for the first years expense.
- Zanzibar Printers (ZP) manufactures printers. Assume that ZP recently paid $350,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only ten years. Read the requirements. Requirement 1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) (a) Record the purchase of the patent. Date Accounts and Explanation Debit Credit (b) Record the amortization for the first full year. Date Accounts and Explanation Debit Credit Requirements 1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year. 2. After using the patent for five years, ZP learns at an industry trade show that another…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 24,000Maynard Printers (MP) manufactures printers. Assume that MP recently paid $450,000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years. Read the requirements Requirement 1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) (a) Record the purchase of the patent. Date Accounts and Explanation Debit Credit (b) Record the amortization for the first full year. Date Accounts and Explanation Debit Credit Requirement 2. After using the patent for four years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with Year 5, to amortize the remaining cost of the patent over…
- Calico Inc. purchased a patent on a new drug. The patent cost $28,500. The patent has a life of 20 years, but Calico only expects to be able to sell the drug for 15 years. A. Calculate the amortization expense. $? B. Record the journal for the first-year expense. If an amount box does not require an entry, leave it blank.Feal-Goode Inc. purchased a patent on a new drug. The patent cost $12,000. The patent has a life of twenty years, but Feal-Goode expects to be able to sell the drug for 50 years. Calculate the amortization expense and record the (formal) journal entry for the first year's expense.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
- Calico Inc. purchased a patent on a new drug. The patent cost $17,000. The patent has a life of 22 years, but Calico only expects to be able to sell the drug for 17 years. A. Calculate the amortization expense. $fill in the blank B. Record the journal for the first-year expense. If an amount box does not require an entry, leave it blank. fill in the blank fill in the blank fill in the blank fill in the blankOn 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.Answer the following problems. DO NOT put any commas or peso (P) signs on your answers. ROUND-UP all answers to the NEAREST PESO. On January 1, 20x1, T Co. purchase a patent from B Inc. for P500,000. Blue has held this patent for 5 years. T estimates that the patent has a remaining useful life of eight years. How much is the patent amortization in 20x1? Your answer On January 1, 20x1, T Co. purchase a patent from B Inc. for P500,000. Blue has held this patent for 5 years. T estimates that the patent has a remaining useful life of eight years. On January 1, 20x3, T Co. purchase a competitive patent from G Corp. for P210,000 in order to protect the old patent. The competitive patent has a remaining legal life and useful life of 20 years. How much is the total amortization expense in 20x3? Your answer