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

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

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