# In january 2013 vega corporation purchased a patent

• Notes
• colonescience
• 194
• 85% (20) 17 out of 20 people found this document helpful

This preview shows 107 out of 110 pages.

60. In January 2013, Vega Corporation purchased a patent at a cost of \$200,000. Legal and filing fees of \$50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In 2016, Vega spent \$40,000 in legal fees for an unsuccessful defense of the patent. The amount charged to income (expense and loss) in 2016 related to the patent should be: A. \$40,000. B. \$65,000. C. \$215,000. D. \$25,000. AACSB: Analytic AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 11-04 Calculate the periodic amortization of an intangible asset. Learning Objective: 11-09 Discuss the accounting treatment of repairs and maintenance; additions; improvements; and rearrangements to property; plant; and equipment and intangible assets. Spiceland - Chapter 11 #60 Topic: Calculate the periodic amortization of an intangible asset Topic: Discuss the accounting treatment of repairs and maintenance, additions, improvements, and rearrangements to PP & E and intangible assets

Subscribe to view the full document.

61. Accounting for a change in the estimated service life of equipment: AACSB: Reflective Thinking AICPA BB: Critical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-05 Explain the appropriate accounting treatment required when a change is made in the service life or residual value of property; plant; and equipment and intangible assets. Spiceland - Chapter 11 #61 Topic: Explain the appropriate accounting treatment required when a change is made in the service life or residual value of PP & E and intangible assets 62. A change in the estimated useful life and residual value of machinery in the current year is handled as: and residual value had been used all along. the new estimates. under the new versus old estimates. AACSB: Reflective Thinking AICPA BB: Critical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-05 Explain the appropriate accounting treatment required when a change is made in the service life or residual value of property; plant; and equipment and intangible assets. Spiceland - Chapter 11 #62
Topic: Explain the appropriate accounting treatment required when a change is made in the service life or residual value of PP & E and intangible assets

Subscribe to view the full document.

You've reached the end of this preview.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern