Ayayai Industries Ltd. acquired two copyrights during 2023. One copyright was on a textbook that was developed internally at a cost of $34,000. This textbook is estimated to have a useful life of 2 years from July 1, 2023, the date it was published. The second copyright is for a history research textbook and was purchased from University Press on October 1, 2023, for $52,000. This textbook seems to have an indefinite useful life. How should these two copyrights be reported on Ayayai's statement of financial position as at December 31, 2023? Copyright No. 1 should be Copyright No. 2 should be ✓. It would be reflected on the December 31, 2023 ✓. It would be reflected on the December 31, 2023 ✓at $ at $

Ayayai Industries Ltd. acquired two copyrights during 2023. One copyright was on a textbook that was developed internally at a cost of $34,000. This textbook is estimated to have a useful life of 2 years from July 1, 2023, the date it was published. The second copyright is for a history research textbook and was purchased from University Press on October 1, 2023, for $52,000. This textbook seems to have an indefinite useful life. How should these two copyrights be reported on Ayayai's statement of financial position as at December 31, 2023? Copyright No. 1 should be Copyright No. 2 should be ✓. It would be reflected on the December 31, 2023 ✓. It would be reflected on the December 31, 2023 ✓at $ at $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sinise Industries acquired two copyrights during 2017. One copyright related to a textbook that was developed internally at a cost of $9,900. This textbook is estimated to have a useful life of 3 years from September 1, 2017, thedate it was published. The second copyright (a history research textbook) was purchased from University Press on December 1, 2017, for $24,000. This textbook has an indefinite useful life. How should these two copyrights be reported on Sinise’s balance sheet as of December 31, 2017?
Presented below is information related to copyrights owned by Wamser Corporation atDecember 31, 2014. Cost $2,700,000Carrying amount 2,350,000Recoverable amount 1,500,000 Assume Wamser will continue to use this asset in the future. As of December 31, 2014, thecopyrights have a remaining useful life of 5 years. Instructions(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31,2014.(b) Prepare the journal entry to record amortization expense for 2015.(c) The recoverable amount of the copyright at December 31, 2015 is $1,600,000. Prepare thejournal entry necessary to record this increase in fair value.
a. A copyright purchased on January 1, 2020, for a cash cost of $15,70O. The copyright is expected to have a 10-year useful life to Springer. b. Goodwill of $77,000 from the purchase of the Hartford Company on July 1, 2019. CA patent purchased on January 1, 2019, for $56,000. The Inventor had registered the patent with the U.S. Patent and Trademark Office on January 1, 2015. Springer Intends to use the patent for its remaining life. Required: 1. Compute the amortization expense of each intangible for the year ended December 31, 2020. The company does not use contra- accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the Income statement for 2020. 2b. Show how the three intangible assets should be reported on the balance sheet for 2020. (Assume there has been no Impairment of goodwill.)
Sinise Industries acquired two copyrights during 2020. One copyright related to a textbook that was developed internally at a cost of $9,900. This textbook is estimated to have a useful life of 3 years from September 1, 2020, the date it was published. The second copyright (a history research textbook) was purchased from University Press on December 1, 2020, for $24,000. This textbook has an indefinite useful life. How should these two copyrights be reported on Sinise's balance sheet as of December 31, 2020?
On July 1, 2022, Oriole Company purchased the copyright to Cheyenne Corp. for $260000. It is estimated that the copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2022 would be $26000. $52000. $24687. $48100.
Presented below is information related to a copyright owned by Music Company at December 31, 2022.Cost of copyright acquired on 1 January 2014 $8,600,000 Recoverable amount at December 31, 2022 3,500,000When the Music Company acquired the copyright in 2014, it estimated the useful life to be 20 years. Assume that Music Company will continue to use this copyright in the future. As of December 31, 2022, the copyright is estimated to have a remaining useful life of 10 years.Required(a) Prepare all the necessary journal entries at December 31, 2023. The company does not use accumulated amortization accounts.(b) The fair value of the copyright at December 31, 2023, is $3,700,000. prepare all the necessary journal entries at December 31, 2022..
The Department of Information and Communication Technology a. A patent was purchased from Patent Inc. for P4,000,000 on January 1, 2019. the agency estimates the remaining useful life of the patent to be 10 years. the patent was carried in Patent Inc.'s accounting records at a net book value of P4,000,000 when Patent Inc. sold it to DICT. b. On January 1, 2020, a computer software was purchased from Software Inc. for P960,000. The agency uses 10-year useful life for computer software. c. the following research and development costs were incurred by DICT in 2020: Materials and equipment Personnel Indirect costs Total 284.000 378,000 204,000 866,000 DICT estimates that these costs will be recouped by December 31, 2023. The materials and equipment purchased have no alternative uses. d. On January 1, 2020, because of recent events in the field, DICT estimates that the remaining life of the patent purchased on January 1, 2019 is only 5 years from January 1, 2020. e. In July 1, 2020, several…
On January 1, 2022, Irwin company purchased the copyright to quick computer tutorials for $120,000. it is estimated that the copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2022 would be. a. $0 b. $24,000 c. $60,000 d. $120,000
Presented below is information related to copyrights owned by Wamser Corporation at December 31, 2014. Cost $2,700,000 Carrying amount 2,350,000 Recoverable amount 1,500,000 Assume Wamser will continue to use this asset in the future. As of December 31, 2014, the copyrights have a remaining useful life of 5 years. Instructions (a) The recoverable amount of the copyright at December 31, 2015 is $1,600,000. Prepare the journal entry necessary to record this increase in fair value.
The intangible assets section of Novak Corporation's balance sheet at December 31, 2025, is presented here. Patents ($78,000 cost less $7,800 amortization) Copyrights ($46,800 cost less $32,760 amortization) Total $70,200 14,040 $84,240 The patent was acquired in January 2025 and has a useful life of 10 years. The copyright was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2026. Jan. 2 Jan.-June Sept. 1 Oct. 1 Paid $60,840 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $299,000 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $26,400. Paid $52,000 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for…
Klaus, Inc. has the ff. information regarding their intangible assets. Klaus spent P2,600,000 of experimental and development costs in its laboratory to develop a patent which was granted on January 2, 2018. Legal fees and other costs associated with the registration of the patent totaled P544,000. Klaus estimates that the useful life of the patent will be 8 years. Klaus purchased a trademark from Nikolai Co. for P1,280,000 on July 1, 2015. The trademark was successfully defended for a total cost of P326,400 which were paid on July 1, 2017. Klaus estimates that the useful life of the trademark will be 20 years from the date of acquisition. Klaus signed an agreement on January 1, 2018, to operate as a franchise of Chooks to Go. For an initial franchise fee of P3,000,000. Of this amount, P600,000 was paid when the agreement was signed and the balance is payable in 4 annual installments of P600,000 each, beginning January 1, 2019. The downpayment is nonrefundable and no future services…
On July 1, 2022, Cullumber Company purchased the copyright to Bramble Corp. for $310000. It is estimated that the copyright will have a useful life of 5 years. The amount of amortization expense recognized for the year 2022 would be