AE12-4 - AE12-4 Correct. (Intangible Amortization)...

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AE12-4 Correct. (Intangible Amortization) Presented below is selected information for Palmiero Company. Answer the questions asked about each of the factual situations. (If answer is zero, please enter 0. Do not leave any fields blank.) 1. Palmiero purchased a patent from Vania Co. for $1,230,700 on January 1, 2008. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2018. During 2010, Palmiero determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2010? $ 738,420 2. Palmiero bought a franchise from Dougherty Co. on January 1, 2009, for $303,500. The carrying amount of the franchise on Dougherty's books on January 1, 2009, was $500,100. The franchise agreement had an estimated useful life of 30 years. Because Palmiero must enter a competitive bidding at the end of 2018, it is unlikely that the
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This note was uploaded on 11/30/2011 for the course ACC 101 taught by Professor B during the Spring '09 term at CUNY Baruch.

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AE12-4 - AE12-4 Correct. (Intangible Amortization)...

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