Janetz Company provided the following information on intangible assets: Required: a. A patent was purchased from...

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Janetz Company provided the following information on intangible assets: Required: a. A patent was purchased from the Louis Company for $760,000 on January 1, year 1. Janetz estimated the remaining useful life of the patent to be 10 years. The patent was carried on Louis's accounting records at a net book value of $360,000 when Louis sold it to Janetz. b. During year 3, a franchise was purchased from the Lenitt Company for $540,000. The contractual life of the franchise is 10 years and Janetz records a full year of amortization in the year of purchase. c. Janetz incurred research and development costs in year 3 as follows: Materials & Supplies $159,000 Personnel $178,000, Indirect Costs $75,000 d. Effective January 1, year 3, based on new events that have occurred, Janetz estimates that the remaining life of the patent purchased from Louis is only five more years. 1. Prepare the entries necessary for years year 1 through year 3 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janetz's December 31, year 3, balance sheet. CORRECTION account fo In year 4, internal auditors discovered that Cistern Displays, Inc., had debited an expense $400,000 cost of equipment purchased on January 1, year 1. The equipment's life was expected to b years with no residual value. Straight-line depreciation is used by Cistern. Required: able 1. Determine the cumulative effect of the error on net income over the three-year period fr year 1 through year 3, and on retained earnings by the end of year 3. 2. Prepare the correcting entry assuming the error was discovered in year 4 before the adju and closing entries. (Ignore income taxes.) 3. Assume instead that the equipment was disposed of in year 5 and the original error was discovered in year 6 after the year 5 financial statements were issued. Prepare the correcting entry in year 6. A Ch ent Straig gain (or loss) component of accumulated other comprehen E12-23 Equity Method On January 1, 2021, Cameron Inc. bought 20% of the outstanding common sto for $300 million cash. At the date of acquisition of the stock, Lake's net assets Their book value was $800 million. The difference was attributable to the fair v exceeding book value, each accounting for one-half of the difference. Lake's net December 31, 2021, was $150 million. During 2021, Lake declared and paid cas buildings have a remaining life of 10 years. 1. Prepare all appropriate journal entries related to the investment during 20 for this investment by the equity method. 2. Determine the amounts to be reported by Cameron: 1. As an investment in Cameron's 2021 balance sheet. 2. As investment revenue in the income statement. 3. Among investing activities in the statement of cash flows. Janetz Company provided the following information on intangible assets: Required: a. A patent was purchased from the Louis Company for $760,000 on January 1, year 1. Janetz estimated the remaining useful life of the patent to be 10 years. The patent was carried on Louis's accounting records at a net book value of $360,000 when Louis sold it to Janetz. b. During year 3, a franchise was purchased from the Lenitt Company for $540,000. The contractual life of the franchise is 10 years and Janetz records a full year of amortization in the year of purchase. c. Janetz incurred research and development costs in year 3 as follows: Materials & Supplies $159,000 Personnel $178,000, Indirect Costs $75,000 d. Effective January 1, year 3, based on new events that have occurred, Janetz estimates that the remaining life of the patent purchased from Louis is only five more years. 1. Prepare the entries necessary for years year 1 through year 3 to reflect the above information. 2. Prepare a schedule showing the intangible asset section of Janetz's December 31, year 3, balance sheet. CORRECTION account fo In year 4, internal auditors discovered that Cistern Displays, Inc., had debited an expense $400,000 cost of equipment purchased on January 1, year 1. The equipment's life was expected to b years with no residual value. Straight-line depreciation is used by Cistern. Required: able 1. Determine the cumulative effect of the error on net income over the three-year period fr year 1 through year 3, and on retained earnings by the end of year 3. 2. Prepare the correcting entry assuming the error was discovered in year 4 before the adju and closing entries. (Ignore income taxes.) 3. Assume instead that the equipment was disposed of in year 5 and the original error was discovered in year 6 after the year 5 financial statements were issued. Prepare the correcting entry in year 6. A Ch ent Straig gain (or loss) component of accumulated other comprehen E12-23 Equity Method On January 1, 2021, Cameron Inc. bought 20% of the outstanding common sto for $300 million cash. At the date of acquisition of the stock, Lake's net assets Their book value was $800 million. The difference was attributable to the fair v exceeding book value, each accounting for one-half of the difference. Lake's net December 31, 2021, was $150 million. During 2021, Lake declared and paid cas buildings have a remaining life of 10 years. 1. Prepare all appropriate journal entries related to the investment during 20 for this investment by the equity method. 2. Determine the amounts to be reported by Cameron: 1. As an investment in Cameron's 2021 balance sheet. 2. As investment revenue in the income statement. 3. Among investing activities in the statement of cash flows.