Barkley Corp. obtained a trade name in January 2013, incurring legal costs of $36,000. The company amortizes the trade name over 8 years. Barkley successfully defended its trade name in January 2014, incurring $9,800 in legal fees. At the beginning of 2015, based on new marketing research, Barkley determines that the fair value of the trade name is $30,000. Estimated total future cash flows from the trade name are $32,000 on January 4, 2015.

Instructions
Prepare the necessary journal entries for the years ending December 31, 2013, 2014, and 2015. Show all computations.

Question

Instructions
Prepare the necessary journal entries for the years ending December 31, 2013, 2014, and 2015. Show all computations.

Quizplus · Accepted Answer

The Answer of Barkley Corp. obtained a trade name in January 2013, incurring legal costs of $36,000. The company amortizes the trade name over 8 years. Barkley successfully defended its trade name in January 2014, incurring $9,800 in legal fees. At the beginning of 2015, based on new marketing research, Barkley determines that the fair value of the trade name is $30,000. Estimated total future cash flows from the trade name are $32,000 on January 4, 2015.

Instructions
Prepare the necessary journal entries for the years ending December 31, 2013, 2014, and 2015. Show all computations.