Finding something? Use this search bar!

Monday, November 15, 2010

Valix Finacc vol 1 Problem 20-12

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-12



1. Copyright                                                                                           620,000
    Patent                                                                                                400,000
Retained earnings                                                                                           1,020,000                                                                                                                       
    Copyright 1                                                                                                                400,000
    Less: Amortization from 1/1/2004 to 12/31/2007 (400,000 / 20 x 4)                                80,000
    Book value                                                                                                                 320,000

    Copyright 2                                                                                                                360,000
    Less: Amortization from 7/1/2005 to 12/31/2007 (360,000 / 15 x 2.5)                             60,000
    Book value                                                                                                                 300,000                                                                                                                                             
    Patent                                                                                                                        500,000
    Less: Amortization for 2006 and 2007 (500,000 / 10 x 2)                                               100,000
    Book value                                                                                                                 400,000

2. Amortization of copyright (20,000 + 24,000)                                         44,000
    Amortization of patent                                                                        50,000
Copyright                                                                                                             44,000
            Patent                                                                                                                  50,000

No comments:

Post a Comment