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On January 3, 2011, the company paid its lawyers $10,000 for successfully defending the patent in a lawsuit.
Compute the ending carrying value of the tradename for 2010 and 2011. Should the company amortize the tradename?
How much amortization expense should the company recognize on each intangible asset in 2010?
Prepare the journal entry (if any) for Probst Company to record the impairment of its trademark at the end of 2010.
Blaha Company estimates that the fair value of the subsidiary is $720,000, of which it allocates $660,000 to the subsidiary's identifiable assets.
On January 2, 2010, the Paul Company purchased the Marino Company by acquiring all its outstanding shares for $300,000 cash.
Purchased the rights to a novel by a best-selling novelist in exchange for 10,000 shares of $10 par value common stock selling for $60 per share.
Paid an advertising agency $60,000 to develop a two-year advertising campaign to promote a new tradename.
The company had capitalized $57,000 to the Patent account at the beginning of 2009 for the cost of a patent.
Sold a prototype machine for $7,000. The research and development were performed in previous years.
The company purchased the net assets of Lansing Company on September 1, 2010, for $950,000, and the Lansing Company was liquidated.
How would your answer change if the projected sales were considered to be "probable"?
Explain the factors that a company uses to determine whether it capitalizes expenditures relating to property, plant, and equipment already in use.
In general, at what amount should a company record plant assets received in exchange for other nonmonetary assets?
An estimate indicated that it would cost $2 million to remove the asbestos, and the bank completed the purchase.
Briefly explain the meaning of the four factors that are involved in the computation of a company's periodic charge for depreciation.
Does recording depreciation generate funds for the replacement of the asset? Explain.
What are the primary causes of depreciation? For each cause, indicate which depreciation method may be most appropriate.
Under what circumstances is an asset's total depreciation amount not included in a company's current income statement?
What disclosures of depreciation are required in a company's financial statements and the accompanying notes?
What is the difference between the company's income before taxes reported on its financial statements and the taxable income reported on its tax return.
The company discovers that the estimated residual value has been ignored in the computation of the depreciation.
The building has an expected residual value of $20,000 at the end of its expected life of 20 years.
Compute the depreciation rate under the fixed-percentage-of-the-declining-balance method.
Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the asset's life, compute the depreciation .