Академический Документы
Профессиональный Документы
Культура Документы
Instructions
List those accounts that should be classified as intangible assets.
Instructions
Prepare a computation of the carrying value of the patent at December 31, 2011.
Instructions
(a) Compute 2009 amortization, 12/31/09 carrying value, 2010 amortization, and 12/31/10 carrying value if
the company amortizes the patent over 10 years.
(b) Compute the 2011 amortization and the 12/31/11 carrying value, assuming that at the beginning of
2011, based on new market research, Lerner determines that the recoverable amount of the patent is
$44,000.
Assume Wamser will continue to use this asset in the future. As of December 31, 2010, the copyrights have
a remaining useful life of 5 years.
Instructions
(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2010.
(b) Prepare the journal entry to record amortization expense for 2011.
(c) The recoverable amount of the copyright at December 31, 2012 is $1,500,000. Prepare the journal entry
(if any) necessary to record this increase in fair value.
Instructions
Determine the amount of goodwill (if any) implied in the purchase price of $2,075,000. Show calculations.
On May 31, 2011, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall
Corporation, which became a division of Armstrong. Hall reported the following statement of financial position
at the time of the acquisition:
It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was
$2,800,000. At December 31, 2011, Hall reports the following statement of financial position information:
It is determined that the recoverable amount value of the Hall division is $2,100,000.
Instructions
(a) Compute the amount of goodwill recognized, if any, on May 31, 2011.
(b) Determine the impairment loss, if any, to be recorded on December 31, 2011.
(c) Assume that the recoverable amount of the Hall division is $1,900,000 instead of $2,100,000. Prepare
the journal entry to record the impairment loss, if any, on December 31, 2011.