Ivanhoe Ltd. purchased several intangible assets, as follows: Asset Purchase Cost Asset Purchase Cost Licences $85,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66561c68278f5_40066561c6811395.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66561c690d559_40066561c68ebb36.jpg)
Transcribed Image Text:
Ivanhoe Ltd. purchased several intangible assets, as follows: Asset Purchase Cost Asset Purchase Cost Licences $85,000 Patent $170,000 Customer lists 62,400 Copyright 278,000 The following information is also available: In addition to the costs listed above, there were legal fees of $13,400 associated with the licence acquisitions. The licences are valid in perpetuity, and sales of the products produced under the licences have been strong and are expected to continue at the same level for many decades. The customer lists are expected to be useful for the next six years. The patent has a legal life of 20 years, but technological changes are expected to render it worthless after about 8 years. The copyright is good for another 40 years, but nearly all the related sales are expected to occur during the next 10 years. Ivanhoe Ltd. purchased several intangible assets, as follows: Asset Purchase Cost Asset Purchase Cost Licences $85,000 Patent $170,000 Customer lists 62,400 Copyright 278,000 The following information is also available: In addition to the costs listed above, there were legal fees of $13,400 associated with the licence acquisitions. The licences are valid in perpetuity, and sales of the products produced under the licences have been strong and are expected to continue at the same level for many decades. The customer lists are expected to be useful for the next six years. The patent has a legal life of 20 years, but technological changes are expected to render it worthless after about 8 years. The copyright is good for another 40 years, but nearly all the related sales are expected to occur during the next 10 years.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2011, Galactica Corporation had the following stockholders equity accounts. Common Stock ($20 par value, 60,000 shares issued and outstanding) ............... $1,200,000 Paid-in Capital...
-
Figure P25.17 shows a 10-cm-diameter loop in three different magnetic fields. The loop's resistance is \(0.10 \Omega\). For each case, determine the induced emf, the induced current, and the...
-
Use the PewWorkPlay dataset to build a set of nested regression models to address the following two hypotheses: 1. Income affects score on the Concern about Job index. 2. Once you take into account...
-
Junkyard Arts, Inc., had earnings of $316,000 for 2014. The company had 40,000 shares of common stock outstanding during the year. In addition, the company issued 15,000 shares of $50 par value...
-
please provide exactly answer,no need to repeat CAS Communication of Internal control weaknesses (CAS 265) Auditor is required to communicate significant internal control weaknesses what cause RAM...
-
If the population of a city is P = 3000 (1 + 0.05t + 0.008t-) , where t is in years from 2000, what is the acceleration in the size of the population? dap dt 2
-
Link two articles from a trade journal in your field and discuss them in a short paper...
-
Evaluate vendors for supplying differentiated or specialized widgets. Review the "Supplier Scorecard Data" document and answer the questions below. 1. Discuss which supplier you will select,...
-
3. By keeping the leading term in the relativistic correction, the kinetic energy operator T of a relativistic electron in one dimension can be written as p 3p4 + 2m 8m3c2 where c is the speed of...
-
CHOOSE CORRECT OPTION How might inadequate training impact Thandiwe's ability to address classroom challenges? a. Develops effective teaching strategies b. Enhances problem solving skills and creates...
-
A 3.5-kg cannon on wheels is loaded with a 0.0527-kg ball. The cannon and ball are initially moving forward with a speed of 1.27 m/s. The cannon is ignited and launches a 0.0527-kg ball forward with...
-
In the shift from swing to bebop, what instrument was dropped from the rhythm section? acoustic guitar tuba banjo string bass
-
What are the elements in a product development cycle? For what is each responsible?
-
3. The second recommendation is a difficult assignment, especially considering the size of the IRS and the complexity of the project. How does one go about creating an environment of trust,...
-
5. Asateam, define innovation.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App