Valix Finacc vol 1 Problem 20-20

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

1. Amortization of patent                                                                   280,000

            Accumulated amortization (1,920,000 – 240,000 / 6)                             280,000

2. Trademark (800,000 x 3/4)                                                                600,000

    Noncompetition agreement                                                          200,000

            Cash                                                                                                                   800,000

3. Amortization of noncompetition agreement                                   40,000

            Accumulated amortization (200,000 / 5)                                                            40,000

4. Royalty expense                                                                                 50,000

            Cash                                                                                                                    50,000