HW12 - HomeworkCh12 Q1) In early January 2009, Lerner...

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Homework – Ch 12 Q1) In early January 2009, Lerner Corporation applied for a patent, incurring legal costs of $50,000. In January 2010, Lerner incurred $9,000 of legal fees in a successful defense of its patent. Instructions (a) Compute 2009 amortization, 12/31/09 carrying value, 2010 amortization, and 12/31/10 carrying value if the company amortizes the patent over 10 years. (b) Compute the 2011 amortization and the 12/31/11 carrying value, assuming that at the beginning of 2011, based on new market research, Lerner determines that the fair value of the patent is $44,000. Estimated future cash flows from the patent are $45,000 on January 3, 2011. Q2) On July 1, 2006, Griffey Corporation purchased Johnson Company by paying $187,500 cash and issuing a $75,000 note payable to Steve Johnson. At July 1, 2006, the balance sheet of Johnson Company was as follows. Cash $ 37,500 Accounts payable $150,000 Receivables 67,500 Stockholders’ equity 176,250 Inventory 75,000 $326,250 Land 30,000 Buildings (net) 56,250 Equipment (net) 52,500 Trademarks 7,500 $326,250 The recorded amounts all approximate current values except for land (worth $45,000), inventory (worth $93,750), and trademarks (worth $11,250). Instructions
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This note was uploaded on 04/09/2010 for the course ACC 5110 taught by Professor Lee during the Winter '10 term at Wayne State University.

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HW12 - HomeworkCh12 Q1) In early January 2009, Lerner...

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