Sheffield Corporation purchases a patent from Sage Hill Inc. on July 1, 2017, for $280,000. The...

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Sheffield Corporation purchases a patent from Sage Hill Inc. on July 1, 2017, for $280,000. The patent has a remaining legal life of 9 years. Sheffield estimates the patent will have a useful life of 4 years, based on expected product innovations in the market. Prepare Sheffield's journal entries to record the purchase of the patent and 2017 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record purchase of patents) (To record amortization of patents) Current Attempt in Progress Kingbird had one patent recorded on its books as of January 1, 2017. This patent had a book value of $131,760 and a remaining useful life of 6 years. During 2017, Kingbird incurred research and development costs of $205,300 related to this patent and was sued by a competitor to nullify the patent. On September 1, 2017, the Court found that Kingbird's patent was valid and that its competitor could not use the process Kingbird had patented. The company incurred $65,920 to defend this patent. At what amount should patent(s) be reported on the December 31, 2017, balance sheet, assuming monthly amortization of patents? Carrying amount 12/31/17 $ eTextbook and Media Current Attempt in Progress On August 1, 2017, Riverbed Corporation acquired Marin, Inc. for a cash payment of $2.30 million. At the time of purchase, Marin's balance sheet showed assets of $4,422,000, liabilities of $2,622,000, and owners' equity of $1,800,000. The fair value of Marin's identifiable assets is estimated to be $4,330,000. Compute the amount of goodwill acquired by Riverbed. Value assigned to goodwill eTextbook and Media +A (a) On January 1, 2017, Pharoah incurred organization costs of $281,000. What amount of organization expense should be reported in 2017? Amount to be reported $ (b) Pharoah bought a franchise from Cullumber Co. on January 1, 2016, for $198,000. The carrying amount of the franchise on Cullumber's books on January 1, 2016, was $253,000. The franchise agreement had an estimated useful life of 10 years. Because Pharoah must enter a competitive bidding at the end of 2018, it is unlikely that the franchise will be retained beyond 2025. What amount should be amortized for the year ended December 31, 2017? Amount to be amortized $ (c) Pharoah purchased a patent from Epp Co. for $510,000 on January 1, 2015. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2025. During 2017, Pharoah 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, 2017? Amount to be reported A (d) Pharoah purchased the license for distribution of a popular consumer product on January 1, 2017, for $75,000. 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 nominal fee, Pharoah can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2017? Amount to be amortized eTextbook and Media In early January 2016, Cheyenne Corporation applied for a trade name, incurring legal costs of $9,000. In January 2017, Cheyenne incurred $3,240 of legal fees in a successful defense of its trade name. (a) Compute 2016 amortization, 12/31/16 book value, 2017 amortization, and 12/31/17 book value if the company amortizes the trade name over 10 years. (Round all answers to O decimal places, e.g. 8,564) 2016 amortization 12/31/16 book value 2017 amortization A 12/31/17 book value $ A +A Sheffield Corporation purchases a patent from Sage Hill Inc. on July 1, 2017, for $280,000. The patent has a remaining legal life of 9 years. Sheffield estimates the patent will have a useful life of 4 years, based on expected product innovations in the market. Prepare Sheffield's journal entries to record the purchase of the patent and 2017 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record purchase of patents) (To record amortization of patents) Current Attempt in Progress Kingbird had one patent recorded on its books as of January 1, 2017. This patent had a book value of $131,760 and a remaining useful life of 6 years. During 2017, Kingbird incurred research and development costs of $205,300 related to this patent and was sued by a competitor to nullify the patent. On September 1, 2017, the Court found that Kingbird's patent was valid and that its competitor could not use the process Kingbird had patented. The company incurred $65,920 to defend this patent. At what amount should patent(s) be reported on the December 31, 2017, balance sheet, assuming monthly amortization of patents? Carrying amount 12/31/17 $ eTextbook and Media Current Attempt in Progress On August 1, 2017, Riverbed Corporation acquired Marin, Inc. for a cash payment of $2.30 million. At the time of purchase, Marin's balance sheet showed assets of $4,422,000, liabilities of $2,622,000, and owners' equity of $1,800,000. The fair value of Marin's identifiable assets is estimated to be $4,330,000. Compute the amount of goodwill acquired by Riverbed. Value assigned to goodwill eTextbook and Media +A (a) On January 1, 2017, Pharoah incurred organization costs of $281,000. What amount of organization expense should be reported in 2017? Amount to be reported $ (b) Pharoah bought a franchise from Cullumber Co. on January 1, 2016, for $198,000. The carrying amount of the franchise on Cullumber's books on January 1, 2016, was $253,000. The franchise agreement had an estimated useful life of 10 years. Because Pharoah must enter a competitive bidding at the end of 2018, it is unlikely that the franchise will be retained beyond 2025. What amount should be amortized for the year ended December 31, 2017? Amount to be amortized $ (c) Pharoah purchased a patent from Epp Co. for $510,000 on January 1, 2015. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2025. During 2017, Pharoah 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, 2017? Amount to be reported A (d) Pharoah purchased the license for distribution of a popular consumer product on January 1, 2017, for $75,000. 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 nominal fee, Pharoah can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2017? Amount to be amortized eTextbook and Media In early January 2016, Cheyenne Corporation applied for a trade name, incurring legal costs of $9,000. In January 2017, Cheyenne incurred $3,240 of legal fees in a successful defense of its trade name. (a) Compute 2016 amortization, 12/31/16 book value, 2017 amortization, and 12/31/17 book value if the company amortizes the trade name over 10 years. (Round all answers to O decimal places, e.g. 8,564) 2016 amortization 12/31/16 book value 2017 amortization A 12/31/17 book value $ A +A