Your answer is correct. Prepare the journal entries to record all the entries related to the patent during 2018. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit January 2, 2018 Patents 82,600 Cash 82,600 July 1, 2018 Patents 15,372 Cash 15,372 December 31, 2018 TAmortization Expense 18228 Patents 18228 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 2 of 15 used Your answer is correct. At December 31, 2018, an impairment test is performed on the license purchased in 2017. It is estimated that the net cash flows to be received from the license will be $14,000, and its fair value is $11,400. Compute the amount of impairment, if any, to be recorded on December 31, 2018. Loss 4 14210 on impairment Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 15 used (c) x Your answer is incorrect. Try again. What is the amount to be reported for intangible assets on the balance sheet at December 31, 2017? At December 31, 2018? December 31, 2017 December 31, 2018 Amount to be reported 11400 11400 Attempts: 1 of 15 used (c) Your answer is incorrect. Try again. What is the amount to be reported for intangible assets on the balance sheet at December 31, 2017? At December 31, 2018? December 31, 2017 December 31, 2018 Amount to be reported 11400 11400 Click if you would like to Show Work for this question: Open Show Work Practice Problem 12-01 (Part Level Submission) Blossom Co., organized in 2017, provided you with the following information. 1. 2. 3. Purchased a license for $31,520 on July 1, 2017. The license gives Blossom exclusive rights to sell its services in the tri-state region and will expire on July 1, 2025. Purchased a patent on January 2, 2018, for $82,600. It is estimated to have a 5-year life. Costs incurred to develop an exclusive Internet connection process as of June 1, 2018, were $87,400. The process has an indefinite life. On April 1, 2018, Blossom Co. purchased a diode manufacturer for $701,400. Goodwill recorded in the transaction was $115,000. On July 1, 2018, legal fees for successful defense of the patent purchased on January 2, 2018, were $15,372. Research and development costs incurred as of September 1, 2018, were $87,400. 4. 5. 6. (a) Your answer is correct. Prepare the journal entries to record all the entries related to the patent during 2018. (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. Record journal entries in the order presented in the problem.) Your answer is correct. Prepare the journal entries to record all the entries related to the patent during 2018. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit January 2, 2018 Patents 82,600 Cash 82,600 July 1, 2018 Patents 15,372 Cash 15,372 December 31, 2018 TAmortization Expense 18228 Patents 18228 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 2 of 15 used Your answer is correct. At December 31, 2018, an impairment test is performed on the license purchased in 2017. It is estimated that the net cash flows to be received from the license will be $14,000, and its fair value is $11,400. Compute the amount of impairment, if any, to be recorded on December 31, 2018. Loss 4 14210 on impairment Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 15 used (c) x Your answer is incorrect. Try again. What is the amount to be reported for intangible assets on the balance sheet at December 31, 2017? At December 31, 2018? December 31, 2017 December 31, 2018 Amount to be reported 11400 11400 Attempts: 1 of 15 used (c) Your answer is incorrect. Try again. What is the amount to be reported for intangible assets on the balance sheet at December 31, 2017? At December 31, 2018? December 31, 2017 December 31, 2018 Amount to be reported 11400 11400 Click if you would like to Show Work for this question: Open Show Work Practice Problem 12-01 (Part Level Submission) Blossom Co., organized in 2017, provided you with the following information. 1. 2. 3. Purchased a license for $31,520 on July 1, 2017. The license gives Blossom exclusive rights to sell its services in the tri-state region and will expire on July 1, 2025. Purchased a patent on January 2, 2018, for $82,600. It is estimated to have a 5-year life. Costs incurred to develop an exclusive Internet connection process as of June 1, 2018, were $87,400. The process has an indefinite life. On April 1, 2018, Blossom Co. purchased a diode manufacturer for $701,400. Goodwill recorded in the transaction was $115,000. On July 1, 2018, legal fees for successful defense of the patent purchased on January 2, 2018, were $15,372. Research and development costs incurred as of September 1, 2018, were $87,400. 4. 5. 6. (a) Your answer is correct. Prepare the journal entries to record all the entries related to the patent during 2018. (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. Record journal entries in the order presented in the problem.)
