Solution-Calculate the amortization of the patent

Calculate the amortization of the patent

Assignment Help Accounting Basics

Reference no: EM132723157

Problem - Track Town Co. had the following transactions involving intangible assets:

Jan. 1 Purchased a patent for leather soles for $10,000 and estimated its useful life to be 10 years.

Apr. 1 Purchased a copyright for a design for $15,000 with a life left on the copyright of 25 years. The estimated remaining (economic) life of the copyright is five years.

July 1 Signed a 5-year franchise agreement and opened a Starting Line high-tech running shoe store. Paid $50,000 to the franchisor.

Required -

1. Using the straight-line method, calculate the amortization of the patent, copyright, and franchise.

2. Prepare general journal entries to record the end-of-year amortizations.

Reference no: EM132723157

Questions Cloud

Design strategies for market penetration : Pick a product of your choice and use the Ansoff product-market growth matrix to design strategies for market penetration

Managing specific medical emergencies in primary care : Discuss the importance of being proficient in managing medical emergencies in a primary care setting.

How would you greet a guest at the door : How would you greet a guest at the door? Make sure you include your standard welcome and greeting for the guest.

List the basic steps in making a sale : Create Business Plan signifying the advantages and challenges to the proposed business. Identify the important records that must be kept by a small business.

Calculate the amortization of the patent : Track Town Co. had the following transactions involving intangible assets: calculate the amortization of the patent, copyright, and franchise

Managing head trauma in primary care : A 45 year old client comes into your office and states that he slipped on ice in his driveway earlier that morning.

What was the most valuable concept learned about in class : Discuss what you have learned in this class and how it will assist you in achieving further professional goals. ( Managing Human Capital )

History of evolution of public health : Identify the major events in the history of evolution of public health in the United States, and then discuss how these events helped shape public health today.

Prepare general journal entries for depletion expense : Mineral Works Co. acquired a salt mine at a cost of $1,700,000. Prepare general journal entries for depletion expense

User Account

All Pages

Calculate the amortization of the patent

Reference no: EM132723157

Reference no: EM132723157

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT