7253096

# 7253096 - Solution Computaiton of the Patents value should...

This preview shows page 1. Sign up to view the full content.

If you want the formulas and any calculations, select the corresponding cell and press F2(Function Key on key board), It will show all calculations and formulas Automatically Question: four year life) having a book value of \$440,000 is worth \$500,000 and an unrecorded patent is valued at \$45,000. Hope Corporation pays \$692,000 on that date for an 80 percent ownership in Brendan. If the patent is to be written off over a 10-year period, at what amount should it be reported on consolidated statements at December 31, 2012?
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Solution: Computaiton of the Patents value should report in consolidated statement at Dec 31 2012 Patent Value \$45,000 Life of Patent 10 Ownership 80% Patent book value in consolidated statement as on 2011 \$36,000 Amortization for 2011 \$3,600 Amortization for 2012 \$3,600 Patent should report 2012 dec 31st after Amortization \$28,800 Hence the Patents value should report in consolidated statement at Dec 31 2012 is \$28,800 On January 1, 2011, Brendan, Inc., reports net assets of \$760,000 although equipment (with a...
View Full Document

## This note was uploaded on 12/05/2011 for the course ACC 134 taught by Professor Erik during the Fall '11 term at Colorado.

Ask a homework question - tutors are online