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Robin Corporation commenced operations at the beginning of 20x2. During 20x2 the following selected transactions and events took place: a) During January, Robin incurred organization

Robin Corporation commenced operations at the beginning of 20x2. During 20x2 the

following selected transactions and events took place:

a) During January, Robin incurred organization costs of $26,000 (legal and

accounting fees paid to set up and register the corporation).

b) On February 31, Robin acquired a patent for $11,000. The remaining legal life at

the time of acquisition was 12 years. Robin estimated, however, that the useful

economic life was six years.

c) Throughout the year, the firm incurred costs of $18,000 to publicize its products.

d) Robin acquired a franchise on July 1. The company paid an initial franchise fee

on July I of $20,000. The franchise term is four years.

e) Robin incurred research and development costs of $45,000 in the early stages of

development of a patent. On October 1, the technical feasibility of the patent was

established and at that time, another $15,000 was spent by Robin: $2,000 in fees

and costs of registering the patent and $13,000 to the chief engineer on the project,

who signed a waiver granting all rights to the patent exclusively to Robin. This

patent was estimated to have a useful life of ten years.

Prepare journal entries to record the above expenditures and any required adjustments at

the end of the year. Robin's year is December 31, 20x2. Assume IFRS.

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