As of December $31,2009,$ Nalysnyky has a patent with a carrying value of $$500,000.$ The original cost was $$850,000$ and the accumulated amortization is $$350,000.$ Nalysnyky has elected a policy of revaluing all intangibles.

The patent has a remaining life of $10$ years as of January $1,2010.$ As of December $31,2010,$ the fair value of the patent was $$550,000.$

No revaluation or impairment was necessary during $2011.$

When testing for impairment at year$-$end $2012$ the recoverable amount of the patent on was $$300,000.$

Required:

Prepare the necessary journal entries for the patent for $2010,2011,$ and $2012.$

$$530$As of December $31,2009,$ Nalysnyky has a patent with a carrying value of $$500,000.$ The original cost was $$850,000$ and the accumulated amortization is $$350,000.$ Nalysnyky has elected a policy of revaluing all intangibles.

The patent has a remaining life of $10$ years as of January $1,2010.$ As of December $31,2010,$ the fair value of the patent was $$550,000.$

No revaluation or impairment was necessary during $2011.$

When testing for impairment at year$-$end $2012$ the recoverable amount of the patent on was $$300,000.$

Required:

Prepare the necessary journal entries for the patent for $2010,2011,$ and $2012.$

Answer rating: 100% (QA)

1 2010 Revaluation of Patent Increase in Patent Carrying Value 550000 500000 ... View the full answer