CALCULATOR PRINTER VERSION BACK Exercise 12-4 Presented below is selected information for Alatorre Company Answer the questions asked about each of the factual situations 1. Alatorre purchased a patent from Vania Co. for $1,000,000 on January 1, 2015. The patent is being amortized over its What amount should be reported in the balance sheet for the 017, Alatorre determined that the economic benefits of the patent would not last longer than 6 years from the date of patent, net of accumulated amortization, at December 31, 20177 The amount to be reported 2. Alatorre bought a franchise from Alexander Co. on January 1, 2016, for $400,000. The c on January 1, 2016, for $400,000. The carrying amount of the franchise on Alexander's books on January 1, 16, was $500,000. The franchise agreement had an estimated useful life of 30 years. Because Alatorre must enter a competitive bidding at unlikely that the franchise will be retained beyond 2025. W hat amount should be amortized for the year ended December 31, 20177 The amount to be amortized 3. On January 1, 2017, Alatorre Incurred organization costs of $275,000. What amount of organization expense should be reported in 20177 The amount to be reporteds 4. Alatorre purchased the license for distribution of a popular consumer product cash fiows for an indefinite period of time. The license has an initial term of 5 years but by paying a nominal fee, Alatorre can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2017? on January 1, 2017, for $150,000. It is expected that this product will generate The amount to be amortized Click if you would like to Show Work for this question: Open Show Work