Question
Show correct answers Item 11 Item 11 5 of 5 points awarded Item Scored Grafix Image Group owns and markets various brands and trademarks, including
Show correct answers
Item 11
Item 11 5 of 5 points awarded Item Scored
Grafix Image Group owns and markets various brands and trademarks, including Foggy, Seaview, Echo, B. Sturdy, Amy Silver, Rhino, Nuts, Savory Cake, and Puppy. The companys financial statements for the year ended December 31, 2015, indicate the following totals for these trademarks (in millions):
2015 | 2014 | |||||
Trademarks (at cost) | $ | 2,005 | $ | 1,820 | ||
Accumulated Amortization | 30 | 33 | ||||
Trademarks, net | 1,975 | 1,787 | ||||
During 2015, Grafix Image Group acquired the Strawberry Shortcake and Pony trademarks at a cost of $218 million, recorded $5 million of trademark amortization for the year, and disposed of trademarks for proceeds of $14 million cash. Assume none of the trademarks were judged to be impaired during the year.
Required:
Based on the information given, determine the following for trademarks disposed of during 2015: (a) their cost, (b) their accumulated amortization at the time of disposal, and (c) the gain (loss) on disposal of trademarks. (Enter your answer in millions not in dollars. Loss amounts should be indicated by minus sign.)
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