Question
In early January 2019, Pina Corporation applied for a trade name, incurring legal costs of $17,000. In January 2020, Pina incurred $9,000 of legal fees
In early January 2019, Pina Corporation applied for a trade name, incurring legal costs of $17,000. In January 2020, Pina incurred $9,000 of legal fees in a successful defense of its trade name.
(a)
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Your answer is correct.
Compute 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.
2019 amortization | $ | |
12/31/19 book value | $ | |
2020 amortization | $ | |
12/31/20 book value | $ |
eTextbook and Media
Attempts: unlimited
(b)
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Your answer is correct.
Compute the 2020 amortization and the 12/31/20 book value, assuming that at the beginning of 2020, Pina determines that the trade name will provide no future benefits beyond December 31, 2023.
2020 amortization | $ | |
12/31/20 book value | $ |
eTextbook and Media
Attempts: unlimited
(c)
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Your answer is incorrect.
Ignoring the response for part (b), compute the 2021 amortization and the 12/31/21 book value, assuming that at the beginning of 2021, based on new market research, Pina determines that the fair value of the trade name is $15,280. Estimated total future cash flows from the trade name is $16,480 on January 3, 2021.
2021 amortization | $ | |
12/31/21 book value | $ |
I already solved A and B i just need C. A is 1700,15300,2700,21600 B is 6075, 18225
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