Crane Company has a December 31 fiscal year end. Selected information follows for Crane Company for...

 

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Crane Company has a December 31 fiscal year end. Selected information follows for Crane Company for three independent situations as at December 31, 2020: 1. Crane purchased a patent from Hopkins Inc. for $399,000 on January 1, 2017. The patent expires on January 1, 2025. Crane has been amortizing it over its legal life. During 2020, Crane determined that the patent's economic benefits would not last longer than six years from the date of acquisition. 2. Crane has a trademark with an indefinite life that had been purchased in 2013 for $262,000. During 2016, the company spent $54,000 on a lawsuit that successfully defended the trademark. On December 31, 2020, it was assessed for impairment and the recoverable amount was determined to be $291,000. 3. In 2015, Crane purchased another business and paid $63,000 in excess of the fair value of the net identifiable assets of that business. This goodwill was assessed for impairment as at December 31, 2019, and December 31, 2020. The recoverable amount was determined to be $48,000 at December 31, 2019, and $72,000 at December 31, 2020. For each of these assets, determine the amount that will be reported on Crane's December 31, 2019 and 2020, statements of financial position. (Round answers to O decimal places, e.g. 5,125.) Assets Patent $ Trademark $ Goodwill $ Balance Dec. 31, 2019 $ $ $ Balance Dec. 31, 2020 Crane Company has a December 31 fiscal year end. Selected information follows for Crane Company for three independent situations as at December 31, 2020: 1. Crane purchased a patent from Hopkins Inc. for $399,000 on January 1, 2017. The patent expires on January 1, 2025. Crane has been amortizing it over its legal life. During 2020, Crane determined that the patent's economic benefits would not last longer than six years from the date of acquisition. 2. Crane has a trademark with an indefinite life that had been purchased in 2013 for $262,000. During 2016, the company spent $54,000 on a lawsuit that successfully defended the trademark. On December 31, 2020, it was assessed for impairment and the recoverable amount was determined to be $291,000. 3. In 2015, Crane purchased another business and paid $63,000 in excess of the fair value of the net identifiable assets of that business. This goodwill was assessed for impairment as at December 31, 2019, and December 31, 2020. The recoverable amount was determined to be $48,000 at December 31, 2019, and $72,000 at December 31, 2020. For each of these assets, determine the amount that will be reported on Crane's December 31, 2019 and 2020, statements of financial position. (Round answers to O decimal places, e.g. 5,125.) Assets Patent $ Trademark $ Goodwill $ Balance Dec. 31, 2019 $ $ $ Balance Dec. 31, 2020

Answer rating: 100% (QA)

1 Patent purchase cost on Jan 2017 399000 Annual amortization based on eightyear ... View the full answer