How to amortizing a patent

Assignment Help Financial Accounting
Reference no: EM13496424

A patent is purchased for $40,000 by a company that estimates that the patent has a useful life of 5 years. Because the majority of intangibles are amortized on a straight-line basis, the company decides to amortize the $40,000 patent over a five year period on a straight-line basis. I know that on a straight-line basis, periodic amortization amounts to $8,000 (i.e. $40,000/5). My question is, if that same patent was estimated to have a useful life of 5 years, but was actually outdated by 3 years how would the company account for this error by way of a journal entry?

Reference no: EM13496424

Questions Cloud

What is the highest expected return these bonds could have : Go to Chapter Resources on MyFinanceLab and use the data in the spreadsheet provided to estimate the beta of Nike and Dell stock based on their monthly returns from 2004–2008. (Hint: You can use the slope() function in Excel.)
How much energy is stored by the second capacitor : A 15µ F capacitor is joined in series with a 35µ F capacitor and a 12 Volts battery. How much energy is stored by the second capacitor
State the electron configuration : Oxygen, O2, can acquire one or two electrons to give o2-(superoxide ion) or o2^2-(peroxide ion) write the electron configuration for the following in molecular orbital terms: 1. o2 2. o2- 3. o2^2- also compare the o2 molecule on a)magnetic charact..
Find the amplitude of the subsequent simple harmonic motion : A 8.00 kg bullet traveling at 475 m/s embeds itself in a 1.69 kg wooden block at rest on a frictionless surface. Find the amplitude of the subsequent simple harmonic motion
How to amortizing a patent : A patent is purchased for $40,000 by a company that estimates that the patent has a useful life of 5 years. Because the majority of intangibles are amortized on a straight-line basis.
Find how many wavelengths are there in one pulse : A certain type of laser emits light that has a frequency of 5.7 1014 Hz. How many wavelengths are there in one pulse
Find the impedance of the rc combination : An RC series circuit has R = 71.0 \Omega and C = 550 nF. The series combination is connected across a 250 V (rms), 64 Hz power supply. Find the impedance of the RC combination
How many pounds of material does manzoni plan : Company policy is to have enough material on hand at the end of each month to meet 30% of the following month's production needs.
Estimate the recoil velocity : For tests using a ballistocardiograph, a patient lies on a horizontal platform that is supported on jets of air. determine the recoil velocity

Reviews

Write a Review

Financial Accounting Questions & Answers

  Analysis of corporate governance disclosures

Discuss briefly the broad responsibilities of the aforementioned parties and conclude with a 500 word overview of the alleged corporate governance failures that surrounded most of the financial failures

  Nbspredrafting contribution margin statementsaustins

nbspredrafting contribution margin statements.austins shooters inc. operates a paintball course where customers can

  Prepare any journal entries that national chocolate corp

Prepare any journal entries that National Chocolate Corp. should make as the result of information in the preceding report. Assume that the company has 1.0 million shares outstanding on March 5, the par value is $0.01 per share, and the stock pric..

  How the cashier attempted to hide the theftthe jamison

how the cashier attempted to hide the theft?the jamison cardstock company did not spend a lot of time or money

  Discuss fully the tax consequences of this gift to him

Discuss fully the tax consequences of this gift to him, the partnership, his son, and the American Red Cross. Be sure to include the allocation of the current year’s partnership income.

  Frederic chopin corporation is preparing its december 31

frederic chopin corporation is preparing its december 31 2008 balance sheet. the following items may be reported as

  How much net reportable income must dylan recognize

As of January 1 of last year, Dylan's outside basis and at-risk amount for his 40% interest in the DEF Partnership were $60,000. Dylan and the partnership use the calendar year for tax purposes.

  What was gross profit for randy''s spa

What was Gross Profit for Randy's Spa Supplies in February and What was the Gross Profit rate for Randy's Spa Supplies in February

  Calculation of cash received from customersthe following

calculation of cash received from customers.the following balance sheets are provided for victor foodsnbspend of

  Explain nature of agency problem that exists in megamart

What kind of duty agent own to principle, What problem of agency in the case and explain the nature of the agency problem that exists in MegaMart,

  How much is sparrow tax liability

During 2008, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $210,000, a short-term capital loss of $45,000, and a long-term capital gain of $125,000. How much is Sparrow's tax liability ..

  Calculate the basic financial ratios

Profitability Ratios-profit margin, asset turnover, return on assets, debt-to-equity ratio, return on equity-long-term Solvency Ratios-debt-to-equity ratio, debt to total assets, times interest earned, cash debt coverage

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd