Intermediate accoun

ting

Chapter $11$ Homework

Question $13$ of $16-$ Chan

Question $13$ of $16$

$\frac{-}{10}$

Current Attempt in Progress

The following is selected information for Oriole Company.

Answer the questions asked about each of the factual situations. $($Do not leave any answer field blank. Enter $0$ for amounts.$)$

Oriole purchased a patent from Vania Co$.$ for $$1,250,000$ on January $1,2023.$ The patent is being amortized over its remaining legal life of $10$ years, expiring on January $1,2033.$ During $2025,$ Oriole determined that the economic benefits of the patent would not last. longer than $6$ years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December $31,2025?$

The amount to be reported

$

Oriole bought a franchise from Alexander Co$.$ on January $1,2024,$ for $$375,000.$ The carrying amount of the franchise on Alexander's books on January $1,2024,$ was $$375,000.$ The franchise agreement had an estimated useful life of $30$ years. Because Oriole must enter a competitive bidding at the end of $2026,$ it is unlikely that the franchise will be retained beyond $2033.$ What amount should be amortized for the year ended December $31,2025?$

The amount to be amortized

$

$3.$ On January $1,2025,$ Oriole incurred organization costs of $$287,500.$ What amount of organization expense should be reported in $2025?$

The amount to be reported

$

$4.$ Oriole purchased the license for distribution of a popular consumer product on January $1,2025,$ for $$155,000.$ It is expected that this product will generate cash flows for an indefinite period of time. The license has an initial term of $5$ years but by paying a naminal fee, Oriole can renew the license indefinitely for successive $5-$year terms. What amount should be amortized for the year ended December $31,2025?$

The amount to be amortized

$ $$

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