New Tech Company acquired a patent on January 1, 2017 for $35,000. The residual value of the patent is $0. The patent is expected to benefit New Tech Company for 5 years. After using the patent one year, it was discovered that the patent would only be useful for 3 more years.
Required:
1. Prepare the journal entry to record the acquisition of the patent. Omit explanations.
2. Prepare the adjusting journal entry at December 31, 2017. Omit explanation.
3. Prepare the adjusting journal entry at December 31, 2018. Omit explanation.
Correct Answer:
Verified
Q162: Like U.S.GAAP,asset impairments under IFRS may be
Q169: If a long-term plant asset is impaired,generally
Q169: On January 4, 2017, David Company paid
Q170: CBS Corporation acquired a patent for $2,000,000.
Q172: For each of the following, match the
Q173: U.S. GAAP differs from IFRS in the
Q176: 1. On June 1, 2017, Fox Company
Q177: In 2016, the Best Diamond Company purchased
Q178: On January 1, 2017, Plenty of Oil,
Q179: Samson Company has a machine with the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents