Trotman Company had three intangible assets at the end of 2016 (end of the accounting year);...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Trotman Company had three intangible assets at the end of 2016 (end of the accounting year); a. Computer software and Web development technology purchased on January 1, 2015, for $70,000. The technology is expected to have a four-year useful ile to the company. b. A patent purchased from lan Zimmer on January 1, 2016, for a cash cost of $6,000. Zimmer had registered the patent with the U.S. Patent Office five years ago c. A trademark purchased for $13,000 on November 1, 2016. Management decided the trademark has an indefinite life. Required: 1. Compute the acquisition cost of each intangible asset. Technology Patent Trademark Acquisition cost 2. Compute the amortization of each intangible at December 31, 2016. The company does not use contra-accounts. (Assume the company uses straight-line method) Do not runt yo intermediate calculations.) Amortization 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2016. TROTMAN COMPANY Income Statement for 2016 (Partial) Operating expenses: Intangibles TROTMAN COMPANY Balance Sheet December 31, 2016 (Partial) Trotman Company had three intangible assets at the end of 2016 (end of the accounting year); a. Computer software and Web development technology purchased on January 1, 2015, for $70,000. The technology is expected to have a four-year useful ile to the company. b. A patent purchased from lan Zimmer on January 1, 2016, for a cash cost of $6,000. Zimmer had registered the patent with the U.S. Patent Office five years ago c. A trademark purchased for $13,000 on November 1, 2016. Management decided the trademark has an indefinite life. Required: 1. Compute the acquisition cost of each intangible asset. Technology Patent Trademark Acquisition cost 2. Compute the amortization of each intangible at December 31, 2016. The company does not use contra-accounts. (Assume the company uses straight-line method) Do not runt yo intermediate calculations.) Amortization 3. Show how these assets and any related expenses should be reported on the balance sheet and income statement for 2016. TROTMAN COMPANY Income Statement for 2016 (Partial) Operating expenses: Intangibles TROTMAN COMPANY Balance Sheet December 31, 2016 (Partial)
Expert Answer:
Answer rating: 100% (QA)
1 Technology Patent Trademark 2 Technology Patent Trademark Amortiza... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
For a cell reaction involving a two-electron change, the standard e.m.f. of the cell is found to be 0.295 V at 25C. The equilibrium constant of the reaction at 25C will be (a) 1 1010 (b) 29.5 102...
-
Trotman Company had three intangible assets at the end of 2012 (end of the accounting year): (a) Computer software and Web development technology purchased on January 1, 2011, for $70,000. The...
-
Trotman Company had three intangible assets at the end of 2013 (end of the accounting year): a. Computer software and Web development technology purchased on January 1, 2012, for $70,000. The...
-
Being employed as a casual barista in a local caf with a flourishing catering business called 'Brown's Caf' , where you are supervised by the caf owner, Jessica Williams. The company employs 20...
-
Classifying inflows and outflows of cash: Classify each of the following items as an inflow () or an outflow (O) of cash, or as neither (N). Item Change ($) Item Change ($) Cash 100 Accounts...
-
Tom is 68 years old. His employer pays the premiums for group term life insurance coverage of $110,000. The cost to the company for Tom's coverage is $3,000. a. If the plan providing this coverage is...
-
Suppose that a Graph \(M\) is a complete graph and Graph \(N\) is the complement of \(M\). What are the degrees of the vertices of Graph N? How do you know?
-
Ken owns and operates a famous candy store and makes most of the candy sold in the store. Business is particularly heavy during the Christmas season. Ken contracts with Sweet, Inc., to purchase ten...
-
Suppose Autodesk stock has a beta of 2.20, whereas Costco stock has a beta of 0.72. If the risk-free interest rate is 4.5 % and the expected return of the market portfolio is 13.5 %, what is the...
-
Salazar Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Salazar identified three overhead activities and related drivers. Budgeted information for the...
-
Complete problems 1-6 below for independent practice. HW When you are finished, check the solutions with your teacher. the measure of ST. W 24 1. Use the trapezoid midsegment theorem to find 2. Use...
-
Identify and describe one (1) aspect of payroll requirements for which you will need independent expert advice. Sources of independent expert advice may include but are not limited to: o Financial...
-
ABC Corp. allocates the Human Resources and Payroll department costs to the sales departments of Luggage and Purses. Human Resources and Payroll also provide services to each other. Human resources...
-
find the steps to the two questions below. Do you have any insight? 3. Company A has a beta of 0.70, while Company B's beta is 1.20. The required return on the stock market is 11.00%, and the...
-
Rosing, Inc. manufactures dog sleds. The company uses direct labor hours as its application base. The predetermined overhead rate for the year was $24.27 per direct labor hour. The estimated...
-
Fredrickson Company uses job-order costing.Manufacturing overhead is applied to production based on a predetermined rate of 120% of direct labor cost.Any over-or underapplied overhead is closed to...
-
The price of a cell phone dropped from 800 to 750 Calculate the percent decrease and round to the nearest tenth 1 6 3 2 63 3 67
-
The population of Detroit, Michigan, decreased from 1,027,974 in 1990 to 688,701 in 2013 (Source: U.S. Census Bureau). Find the average rate of change in the population of Detroit, Michigan, over the...
-
What is the fundamental accounting model?
-
Write the income statement equation and define each element.
-
Define beginning inventory and ending inventory .
-
In deciding whether to drop its electronics product line, Amazon.com would consider a. the costs it could save by dropping the product line b. the revenues it would lose from dropping the product...
-
In making short-term special decisions, you should a. focus on total costs b. separate variable from fixed costs c. use a traditional absorption costing approach d. focus only on quantitative factors
-
Assume the value of an unlevered firm is $10,000,000. The tax rate is .35. What is the maximum amount of debt that can be issued in substitution for equity if the $10,000,000 is an accurate measure?...
Study smarter with the SolutionInn App