10 Intangibles 1) On May 1, 2020, Chomps purchases a Patent for $300,000. The Patent was originally issued on May 1, 2018. Chomps believes they can use the patent to generate revenue for the remaineder of its legal life. What is the remaining useful life on the patent? What is the annual amortization expense Chomps will book on the patent? Prepare the journal entry to record one year's amortization expense on the patent. DR: CR: What is the net book value of the patent on May 1, 2021? Homework 10 Intangibles 9) On May 1, 2020 Chomps Inc. purchases Gnaw's Inc for $1,000,000. At the time of purchase, Gnaw's Inc had tangible net assets of $500,000 plus a Trademark that Chomps values at $150,000. Prepare the journal entry to record Chomp's purchase of Gnaw's. DR: DR: DR: CR: On May 1, 2022, Chomps reviews the Goodwill on the purchase of Gnaw's and determines the value is now $250,000. Prepare the journal entry to record the impairment DR: CR: Homework 10 Intangibles 2) On August 16, 2045, Chomps purchases the Copyright to "Love Me Tender" by Elvis Presley for $500,000. Chomps believes generate revenue from this copyright for the remainder of its legal life. What is the remaining useful life on the copyright? What is the annual amortization expense Chomps will book on the copyright? Prepare the journal entry to record one year's amortization expense on the copyright. DR: CR: What is the net book value of the Copyright on August 16, 2046