Journal entries calculation Amortization Expense
Answer the questions asked about each of the factual situations.
Palmiero purchased a patent from Vania Co. for $1,459,300 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?
$ 875580 is answers
Palmiero bought a franchise from Dougherty Co. on January 1, 2009, for $368,200. The carrying amount of the franchise on Dougherty's books on January 1, 2009, was $488,900. 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 franchise will be retained beyond 2018. What amount should be amortized for the year ended December 31, 2010?
