sm12 ch 12 solutions (8e)assigned + BE's

sm12 ch 12 solutions (8e)assigned + BE's - CHAPTER 12...

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CHAPTER 12 GOODWILL AND OTHER INTANGIBLE ASSETS SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 12-1 Patents. ............................................................ 87,000 Cash. ....................................................... 87,000 Amortization Expense - Patent. ..................... 8,700 Accumulated Amortization - Patent. .... 8,700 ($87,000 X 1/10 = $8,700) BRIEF EXERCISE 12-2 Patents. ............................................................ 26,000 Cash. ....................................................... 26,000 Amortization Expense - Patent. ..................... 11,950 Accumulated Amortization - Patents. .. 11,950 [($69,600 + $26,000) X 1/8 = $11,950] BRIEF EXERCISE 12-3 Trade Names. ................................................... 72,000 Cash. ....................................................... 72,000
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Amortization Expense – Trade Name. ........... 9,000 Accumulated Amortization – Trade Names. ..................................... 9,000 ($72,000 X 1/8 = $9,000)
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BRIEF EXERCISE 12-4 Franchise. .............................................................. 110,000 Cash. ............................................................. 110,000 Amortization Expense - Franchise. ..................... 6,875 Accumulated Amortization - Franchise. .... 6,875 ($110,000 X 1/12 X 9/12 = $6,875) BRIEF EXERCISE 12-5 Carrying Amount Life in Months Amort. Per Month Months Amort. Patent (1/1/08) $265,000 96 $2,760 12 Legal cost (12/1/08) 96,000 85 $1,129 1 $361,000 Carrying amount $361,000 Less: Amortization Patent (12 X $2,760) (33,120) Legal costs (1 X $1,129) (1,129 ) Carrying amount 12/31/08 $326,751 BRIEF EXERCISE 12-6 Copyright No. 1 for $10,000 should be capitalized. Its carrying value on the December 31, 2008 balance sheet would be $8,888 [$10,000 - ($10,000 X 1/3 X 4/12)]. Copyright No. 2 for $19,400 should be capitalized. Since it has an indefinite useful life it would not be amortized. It would be reflected on the December 31, 2008 balance sheet at its cost of $19,400.
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BRIEF EXERCISE 12-7 Software. ................................................................ 7,620* Loss on Disposal of Old Software. ...................... 1,100 Cash. ............................................................. 7,620 Software. ....................................................... 1,100 * $5,900 + $1,720 = $7,620 BRIEF EXERCISE 12-8 Fair Value % of Total Cost Recorded Amount Land $250,000 25/86 $740,000 $215,116 Building 290,000 29/86 740,000 249,535 Equipment 320,000 32/86 740,000 275,349 $860,000 $740,000 Trade Name. ........................................................ 215,116
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This note was uploaded on 04/14/2010 for the course MOS 3361 taught by Professor Butler during the Spring '10 term at UWO.

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sm12 ch 12 solutions (8e)assigned + BE's - CHAPTER 12...

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