Answer the questions asked about each of the factual

situations.$($Do not leave any answer field blank.

Enter $0$ for amounts.$)$

$1.$Ivanhoe$$purchased a patent from Vania

Co$.$ for $$1,240,000$on January $1,2018.$ The patent is being

amortized over its remaining legal life of $10$ years, expiring on

January $1,2028.$ During $2020,$Ivanhoe$$determined that the

economic benefits 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 $31,2020?$

$$$enter the dollar amount to be reported$$

$2.$Ivanhoe$$bought a franchise from

Alexander Co$.$ on January $1,2019,$ for $$370,000.$ The carrying amount

of the franchise on Alexander$$s books on January $1,2019,$ was

$$370,000.$ The franchise agreement had an estimated useful life of

$30$ years. Because$$Ivanhoe$$must enter a competitive

bidding at the end of $2021,$ it is unlikely that the franchise will

be retained beyond $2028.$ What amount should be amortized for the

year ended December $31,2020?$

$$$enter the dollar amount to be amortized$$

$3.$On January $1,$

$2020,$Ivanhoe$$incurred organization costs of $$285,000.$

What amount of organization expense should be reported in

$2020?$

$$$enter the dollar amount to be reported$$

$4.$Ivanhoe$$purchased the license for

distribution of a popular consumer product on January $1,2020,$ for

$$154,000.$ 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,$$Ivanhoe$$can renew

the license indefinitely for successive $5-$year terms. What amount

should be amortized for the year ended December $31,2020?$

$$$enter the dollar amount to be amortized$$