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ACC304Week_1Chapter_10HW2

ACC304Week_1Chapter_10HW2 - ACC304 Week 1 Solutions Chapter...

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ACC304 Week 1 Solutions Chapter 10 EXERCISE 10-1 (15-20 minutes) (a) 10, 13, 15 (b) 1. Long-term investments in the balance sheet. 2. Property, plant, and equipment in the balance sheet. 3. Research and development expense in the income statement. 4. Current asset (prepaid rent) in the balance sheet. 5. Property, plant, and equipment in the balance sheet. 6. Research and development expense in the income statement. 7. Charge as expense in the income statement. 8. Operating losses in the income statement. 9. Charge as expense in the income statement. 11. Not recorded; any costs related to creating goodwill incurred internally must be expensed. 12. Research and development expense in the income statement. 14. Research and development expense in the income statement.
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ACC304 Week 1 Solutions Chapter 10 EXERCISE 10-6 (15-20 minutes) Patents .................................................................... 350,000 Goodwill .................................................................. 360,000 Franchise ................................................................ 450,000 Copyright ................................................................ 156,000 Research and Development Expense ................. 215,000 Intangible Assets .......................................... 1,531,000 Amortization Expense ........................................... 79,250 Patents ($350,000/8) ..................................... 43,750 Franchise ($450,000/10 X 6/12) ................... 22,500 Copyright ($156,000/5 X 5/12) ..................... 13,000 Balance of Intangible Assets as of December 31, 2004 Patents = $350,000 – $43,750 = $306,250 Goodwill = $360,000 (no amortization) Franchise = $450,000 – $22,500 = $427,500 Copyright = $156,000 – $13,000 = $143,000 EXERCISE 10-13 (10-15 minutes) (a) Cash ........................................................................
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