Problem 1: Intangible Example 1 Patent Pizza the Action purchases a patent from On a Roll on January 1, 2018 for $64,000. The patent has a remaining legal life of 16 years. Pizza the Action feels the patent will be useful until the end of 2027. Prepare Pizza the Action's journal entries to record the purchase and 2018 amortization. - "I In January 2020, Pizza the Action spends $26,000 successfully defending a patent suit. Pizza the Action still feels the patent will be useful until the end of 2027. Prepare the entries to record the $26,000 expenditure and the 2020 amortization. Assume instead that in January 2020, Pizza the Action spends $26,000 to defend its patent but they are UNSUCCESSFUL and the patent is deemed useless. Prepare the necessary entries. Be sure to include the dates these entries will be written.

Problem 1: Intangible Example 1 Patent Pizza the Action purchases a patent from On a Roll on January 1, 2018 for $64,000. The patent has a remaining legal life of 16 years. Pizza the Action feels the patent will be useful until the end of 2027. Prepare Pizza the Action's journal entries to record the purchase and 2018 amortization. - "I In January 2020, Pizza the Action spends $26,000 successfully defending a patent suit. Pizza the Action still feels the patent will be useful until the end of 2027. Prepare the entries to record the $26,000 expenditure and the 2020 amortization. Assume instead that in January 2020, Pizza the Action spends $26,000 to defend its patent but they are UNSUCCESSFUL and the patent is deemed useless. Prepare the necessary entries. Be sure to include the dates these entries will be written.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7MC

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