+1-316-444-1378

I need attached spreadsheets done by Friday evening.
6000000600000 Jennie April 23
Test Your Knowledge
Student Name
Course Name
Student ID:
Date:
Requirements
1.
Students please fill-in areas that are shaded
Req. 1
DEBIT
CREDIT
Journal
DATE
ACCOUNTS AND EXPLANATIONS
E9-24
Acquisition of patent amortization and change in useful life
LO 5 [10-15 minutes]
Miracle Printers (MP) manufactures printers. Assume that MP recently paid
$600000
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.
Assuming the straight-line method of amortization make journal entries to
record (a) the purchase of the patent and (b) amortization for year 1.
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 two remaining years giving the patent a total useful life of six
years. Record amortization for year 5.
(a)
Purchase of patent
(b)
Amortization for one year:
Req. 2
Amortization for year 5:
Calculate book value
Orginal cost
Accm Depreciation:
Year 1
Year 2
Year 3
Year 4
Book value at beg of Yr 5
New estimated useful life remaining
New annual amortization
Accounting 9e

Attachments:

Categories: Uncategorized

0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *