3. On January 1, 2020, Sheridan incurred organization costs of $265,000. What amount of organization expense should be reported in 2020? The amount to be reported $ 4. Sheridan purchased the license for distribution of a popular consumer product on January 1, 2020, for $146,000. 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, Sheridan can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2020? The amount to be amortized $Answer the questions asked about each of the factual situations. {DO not leave any answer eld blank. Enter 0 foramountsJ 1. Sheridan purchased a patent from Vania Co. for $ 1,160,000 on January 1, 2013. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2028. During 2020, Sheridan determined that the economic benets 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, 2020? The amount to be reported $ | 2. Sheridan bought a franchise from Alexander Co. on January 1, 2019. for $330,000. The carrying amount of the franchise on Alexander's books on January 1, 2019, was $330,000. The franchise agreement had an estimated useful life of 30 years. Because Sheridan must enter a competitive bidding at the end of 2021. it is unlikely that the franchise will be retained beyond 2023. What amount should be amortized for the year ended December 31, 2020? The amount to be amortized $ I 3. On January 1, 2020. Sheridan incurred organization costs of $265,000. What amount of organization expense should be reported in 2020? The amount to be reported $ In early January 2019, Marigold Corporation applied for a trade name, incurring legal costs of $16,000. In January 2020, Marigold incurred $6,300 of legal fees in a successful defense of its trade name. [a] Compute 2019 amortization. 12f31f19 book value. 2020 amortization, and 12z'3 H20 book value if the company amortizes the trade name over 10 years. 2019 amortization $ l 12/31/19 book value $ l 2020 amortization $ l 12f31/20 book value at l eTextbook and Media Save for Later Attempts: D Of 5 used Submit 3"1 r. .. r Oriole Gallaries Balance Sheet As of December 31, 2020 Assets Liabilities and Stockholders' Equity Cash $115,000 Accounts payable $49,800 Land 71,000 Notes payable (long-term) 307,500 Buildings (net) 201,000 Total liabilities 357,300 Equipment (net) 176,000 Common stock $212,400 Copyrights (net) 31,000 Retained earnings 24,300 236,700 Total assets $594,000 Total liabilities and stockholders' equity $594,000 Moss and Oriole agree that: 1. Land is undervalued by $30,000. 2. Equipment is overvalued by $5,000. Oriole agrees to sell the gallery to Moss for $350,000. Prepare the entry to record the purchase of Oriole Galleries on Moss's books. (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.)Grouper Corporation was organized in 2019 and began operations at the beginning of 2020. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations. Attorney's fees in connection with organization of the company $15,700 Purchase of drafting and design equipment 10,700 Costs of meetings of incorporators to discuss organizational activities 5,600 State filing fees to incorporate 1,600 $33,600 (a) Compute the total amount of organization costs incurred by Grouper. Total organization costs eTextbook and MediaJoni Teal Mountain Inc. has the following amounts reported in its general ledger at the end of the current year. Organization costs $24,000 Trademarks 16,100 Discount on bonds payable 37,000 Deposits with advertising agency for ads to promote goodwill of company 12,000 Excess of cost over fair value of net identiable assets of acquired subsidiary 77,000 Cost of equipment acquired for research and development projects; 37,000 the equipment has an alternative future use Costs of developing a secret formula for a product that is expected 83,000 to be marketed for at least 20 years {a} On the basis of this information, compute the total amount to be reported byTeal Mountain for intangible assets on its balance sheet at year-end. Total amount reported for intangible assets 53 Presented below is information related to copyrights owned by Blossom Company at December 31, 2020. Cost $8,550,000 Carrying amount 4,400,000 Expected future net cash flows 4,200,000 Fair value 3,540,000 Assume that Blossom Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years. (a) Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not use accumulated amortization accounts. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit