MerryYacht International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totaling nearly $1.4 billion in net property and equipment. Assume that MerryYacht replaced furniture that had been used in the business for five years. The records of the company reflected the following regarding the sale of the existing furniture: Furniture (cost) Accumulated depreciation $6,050,000 5,540,000 Required: 1. Prepare the journal entry for the disposal of the furniture, assuming that it was sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.) a. $510,000 cash b. $1,602,000 cash C. $404,000 cash a. $510,000 cash b. $1,602,000 cash C. $404,000 cash X Answer is not complete. No Transaction General Journal Debit Credit 1 a. Cash Accumulated depreciation Furniture 510,000 5,540,000 6,050,000 2 b. Cash 1,602,000 5,540,000 Accumulated depreciation Gain on sale of long-lived asset Furniture 6,050,000 3 C. Cash 404,000 5,540,000 Accumulated depreciation Loss on sale of long-lived asset Furniture 6,050,000 Trotman Company had three intangible assets at the end of 2019 (end of the accounting year): a. Computer software and website development technology purchased on January 1, 2018, for $84,000. The technology is expected to have a four-year useful life to the company with no residual value. b. A patent purchased from lan Zimmer on January 1, 2019, for a cash cost of $27,000. Zimmer had registered the patent with the U.S. Patent and Trademark Office five years ago. Trotman intends to use the patent for its remaining life. c. A trademark purchased for $32,000 on November 1, 2019. Management decided the trademark has an indefinite life. Required: 1. Compute the amortization of each intangible at December 31, 2019. The company does not use contra-accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the income statement for 2019. 2b. Show how the three intangible assets should be reported on the balance sheet for 2019. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 1. Compute the amortization of each intangible at December 31, 2019. The company does not use contra-accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the income statement for 2019. 2b. Show how the three intangible assets should be reported on the balance sheet for 2019. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Compute the amortization of each intangible at December 31, 2019. The company does not use contra-accounts. Amortization Technology $ Patent $ 21,000 1,800 32,000 X Trademark $ X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Show how the three intangible assets should be reported on the balance sheet for 2019. TROTMAN COMPANY Balance Sheet December 31, 2019 (Partial) Intangibles: Technology $ Patent 42,000 19,200 X 32,000 Trademark $ 93,200
