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Selected information follows for Pharoah Corporation for three independent situations: Pharoah purchased a patent from Bakhshi Co. for $1.6 million on January 1, 2018. The
Selected information follows for Pharoah Corporation for three independent situations: Pharoah purchased a patent from Bakhshi Co. for $1.6 million on January 1, 2018. The patent expires on January 1, 2028, and Pharoah is amortizing it over the 10 years remaining in its legal life. During 2020, Pharoah determined that the patent's economic benefits would not last longer than six years from the date of acquisition. What amount should be reported in the statement of financial position for the patent, net of accumulated amortization, at December 31, 2020? Patent, net of accumulated amortization $ 960000 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Pharoah bought a perpetual franchise from Carmody Inc. on January 1, 2020, for $640,000. Its carrying amount on Carmody's books at January 1, 2020, was $790,000. Assume that Pharoah can only provide evidence of clearly identifiable cash flows for 25 years, but thinks the franchise could have value for up to 60 years. What amount of amortization expense should be reported for the year ended December 31, 2020? Amortization expense $ LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT On January 1, 2018, Pharoah incurred development costs (meeting all required criteria) of $366,000. Pharoah is amortizing these costs over five years. What amount, if any, should be reported as unamortized development costs as at December 31, 2020? Unamortized development costs $ How might the accounting treatment change if Pharoah were using ASPE? (If an answer is zero, please enter O. Do not leave any fields blank.) Unamortized development costs $ 0
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