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Intangible Assets Practical Accounting

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Ashley Nicole Heredia
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57 views4 pages

Intangible Assets Practical Accounting

Uploaded by

Ashley Nicole Heredia
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Problem 1:

Cost of patent 700,000


Amortization -50,000
Carrying value of patent - 2024 650,000

Cost of copyright 6,000,000


Amortization -4,000,000
Carrying value copyright - 2024 2,000,000

Cost of franchise 100,000


Amortization -20,000
Carrying value franchise - 2024 80,000

Problem 2:
Trademarks 45,000
Patents 225,000
Total Intangible asset 270,000

Problem 3:
Cost of patent 480,000
Amortization -240,000
Carrying value of patent - 12/31/2019 240,000

Amortization on original patent 24,000


Amortization on related patent 28000
Total amortization - 2020 52,000

Original patent 168000


Related patent 196000
Carrying value - 12/31/2022 364000

CV patent - 12/31/2022 364,000


Less: Amortization January - July 01, 2023
Original patent -12,000
Related patent -14,000
Loss on patent obsolescence 338,000

Problem 4:

Total earnings for the last 5 years 2,670,000


Gain on sale of equipment -225,000
Typhoon loss 120,000
Adjusted total earnings 2,565,000
Divided by 5
Average earnings 513,000
Normal earnings -336,000
Excess annual earnings 177,000
Capitalization rate 0.2
Goodwill 885,000

Problem 5:

Cost of patent 600,000


Accumulated amortization -200,000
Carrying amount - Jan. 1, 2023 400,000
Amortization expense -80,000
Carrying amount - Dec. 31, 2023 320,000

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