Question 10 of 16 Chapter 11 HW Question 10 Presented below is information related to a copyright owned by Crane Company at December 31, 2025. Cost Carrying amount $8,650,000 4,270,000 Expected future net cash flows 3,920,000 3,580,000 Fair value Assume that Crane Company will continue to use this copyright in the future. As of December 31, 2025, 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, 2025. 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. List debit entry before credit entry.) Account Titles and Explanation Debit Credit Question 6 of 16 Chapter 11 HW Question 6 Pina Corporation obtained a franchise from Kingbird Inc. for a cash payment of $115,200 on April 1, 2025. The franchise grants Pina the right to sell certain products and services for a period of 8 years. Prepare Pina's April 1 journal entry and December 31 adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit Question 7 of 16 Chapter 11 HW Question 7 Oriole Company, organized in 2025, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2025: 1/2/25 Purchased patent (8-year life) $671,000 4/1/25 Purchased goodwill (indefinite life) 593,000 7/1/25 Purchased franchise with 10-year life; expiration date 7/1/35 717,000 8/1/25 Payment for copyright (5-year life) 228,000 9/1/25 Research and development costs 369,000 $2,578,000 (a1) Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (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. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit Chapter 11 HW Question 8 Splish Brothers Industries has the following patents on its December 31, 2024, balance sheet: Patent Item Initial Cost Date Acquired Patent A $48,000 3/1/21 Patent B $22,800 7/1/22 Patent C $16,800 9/1/23 Useful Life at Date Acquired 20 years 10 years 8 years The following events occurred during the year ended December 31, 2025. 1. Research and development costs of $342,800 were incurred during the year. 2. Patent D was purchased on July 1 for $10,080. This patent has a useful life of 12 years. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B's value may have occurred at December 31, 2025. The controller for Splish Brothers estimates the future cash flows from Patent B will be as follows: Year Future Cash Flows 2026 $2,800 2027 $2,800 2028 $2,800 The proper discount rate to be used for these flows is 8%. (Assume that the cash flows occur at the end of the year.) Click here to view factor tables (a) Compute the total carrying amount of Splish Brothers's patents on its December 31, 2024 balance sheet. Total carrying amount $ Question 9 of 16 Chapter 11 HW Question 9 On July 1, 2025, Sheffield Corporation purchased Young Company by paying $260,500 cash and issuing a $117,000 note payable to Steve Young. At July 1, 2025, the balance sheet of Young Company was as follows. (a) Prepare the July 1 entry for Sheffield Corporation to record the purchase. (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. List all debit entries before credit entries.) Cash $51,800 Accounts payable $202,500 Accounts receivable 89,900 Stockholders' equity 238,800 Inventory 103,000 $441,300 Land 40,800 Buildings (net) 74,700 Equipment (net) 70,000 Trademarks 11,100 $441,300 The recorded amounts all approximate current values except for land (fair value of $63,200), inventory (fair value of $125,200), and trademarks (fair value of $16,720). Account Titles and Explanation Debit Credit