Bluestone Company had three intangible assets at the end of the current year: a. A patent...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Company on January 1 for a cash cost of $6,400. When purchased, the patent had an estimated life of 16 years. b. A trademark was registered with the federal government for $3,500. Management estimated that the trademark could be worth as much as $110,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $30,000. The rights are expected to have a five-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Show how these assets and any related expenses should be reported on the balance sheet for the current year. (Deductions should be indicated by a minus sign.) BLUESTONE COMPANY Balance sheet (partial) At December 31 Intangibles: Patents Trademark Licensing Rights Total Intangibles (net) 6,000 $ 3,500 $ 24,000 33,500 < Req 3A Req 3B *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Company on January 1 for a cash cost of $6,400. When purchased, the patent had an estimated life of 16 years. b. A trademark was registered with the federal government for $3,500. Management estimated that the trademark could be worth as much as $110,000 because it has an indefinite life. c. Computer licensing rights were purchased this year on January 1 for $30,000. The rights are expected to have a five-year useful life to the company. Required: 1. Compute the acquisition cost of each intangible asset. 2. Compute the amortization of each intangible for the current year ended December 31. 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Show how these assets and any related expenses should be reported on the balance sheet for the current year. (Deductions should be indicated by a minus sign.) BLUESTONE COMPANY Balance sheet (partial) At December 31 Intangibles: Patents Trademark Licensing Rights Total Intangibles (net) 6,000 $ 3,500 $ 24,000 33,500 < Req 3A Req 3B *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Expert Answer:
Answer rating: 100% (QA)
Bluestone Company Intangible Assets Required 1 Acquisition Cost Asset Acquisition Cost Patent 640... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these accounting questions
-
Fullerton Waste Management purchased land and a warehouse for $600,000. In addition to the purchase price, Fullerton made the following expenditures related to the acquisition: broker's commission,...
-
(1 point) Reduce the matrix to reduced row-echelon form. A = = -1 4 -2 -2 1 3 -2 1 -1 -1 4 -10
-
2. Explain why (sinx - 2)(cosx+2)=0 has no solutions.
-
Use the information in Exercise 2-16 to prepare an August 31 balance sheet for Help Today. Hint: Compute the ownerscapital account balance as of August 31. Data from Exercise 2-16 Carmen Camry...
-
Michelle Fontaine runs an outdoor adventure company called Call of the Wild Ltd. Her busiest months are June through September, although, if the weather holds, she extends her excursions into October...
-
Early in the year Bill Barnes and several friends organized a corporation called Barnes Communications, Inc. The corporation was authorized to issue 50,000 shares of $100 par value, 10 percent...
-
Recognition of Service Contract Revenue} Zac Murphy is president of Blooming Colours Inc., which provides landscaping services in Leamington, Ontario. On November 20, 2018, Murphy signed a service...
-
This problem continues the Daniels Consulting situation from Problem P7-33 of Chapter 7 and Problem P6-38 of Chapter 6. Daniels Consulting reviewed the receivables list from the January transactions....
-
Given the function f (a) = 4x5 + 3x3, determine the derivative of f at = 1 using the limit shown below. You do not have to simplify your
-
Identify the fallacies committed in the following dialogue. You should be able to find at least one case of each fallacy presented in this section. Food for Thought "Let's hit the produce section...
-
It is an assignment about portfolio theory and application. it is the assignment no more than two pages. (included global minimum variance portfolio and tangency portfolio and sort of calculation.)...
-
The selected watch item that I have decided to cover was the "A Helpful Receptionist" video. A man walks into the office and asks the receptionist if it was the correct office for the Metropolitan...
-
As a continuation of Exam Question Number 3, you work as a paralegal for the firm hired to represent Plaintiff Martina against Defendant Vision. You are asked to sit in on the meeting with Martina....
-
The following monthly information is available about a company s only product: Sales ( 2 , 6 0 0 units ) $ 3 9 0 , 0 0 0 Variable Costs 2 2 1 , 0 0 0 Contribution Margin $ 1 6 9 , 0 0 0 Fixed Costs 1...
-
1 Find the derivative of the following 1. f(x) = 12x- 6x+2 28 +4x3/4
-
You have been requested to develop a digital advertising campaign for the Christmas campaign of the department store Harrods. Harrods Limited is a department store located on Brompton Road in...
-
Chapter 2 end review questions 1-5, book Essentials of Marketing by William Perreault and Joseph Cannon and E. Jerome McCarthy . QUESTIONS AND PROBLEMS 1. Review the Cirque du Soleil case study that
-
(a) Water flows through the nozzle of a garden hose. Find an expression for m in terms of line pressure P 1 , ambient pressure P 2 , inside hose diameter D 1 , and nozzle outlet diameter D 2 . Assume...
-
The trial balance for Financial Strategies Service, Inc., on December 31 is presented on the following page. e. The services for all unearned tax fees had been performed by the end of the year. f....
-
How might knowledge of economies of scale and growth relationships among competitors assist managers in strategic planning efforts?
-
Why might managers want to know which competitors are creating jobs, which are eliminating jobs, and over what type of time frame?
Study smarter with the SolutionInn App