Question
1. Grafix Image Group owns and markets various brands and trademarks, including Joe Boxer, London Fog, Ocean Pacific, Ecko Unltd., Umbro, Ed Hardy, Lee Cooper,
1. Grafix Image Group owns and markets various brands and trademarks, including Joe Boxer, London Fog, Ocean Pacific, Ecko Unltd., Umbro, Ed Hardy, Lee Cooper, Buffalo, and Peanuts. The companys financial statements for the year ended December 31, 2013, indicate the following totals for these trademarks (in millions): |
2013 | 2012 | |||||
Trademarks (at cost) | $ | 2,065 | $ | 1,880 | ||
Accumulated Amortization | 36 | 39 | ||||
Trademarks, net | 2,029 | 1,841 | ||||
During 2013, Grafix acquired the Buffalo and Lee Cooper trademarks at a cost of $224 million, recorded $6 million of trademark amortization for the year, and disposed of trademarks for proceeds of $20 million cash. None of the trademarksnot even Ed Hardywere judged to be impaired during the year. |
Required: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Based on the information given, determine the following for trademarks disposed of during 2013: (a) their cost, (b) their accumulated amortization at the time of disposal, and (c) the gain (loss) on disposal of trademarks. (Enter your answer in millions not in dollars. Loss amounts should be indicated by minus sign.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started