ACC 304 All Assignments ACC 304 All Assignments | Page 194
2) Treasure Land Corporation incurred the following costs in 2014.
Prepare the necessary 2014 journal entry or entries for Treasure Land.
3) Sinise Industries acquired two copyrights during 2014. One copy
right related to a text book that was developed internally at a cost of
$9,900. This textbook is estimated to have a useful life of 3 years from
September 1, 2014, the date it was published. The second copy right (a
history research textbook) was purchased from University press on
December 1, 2014, for $24,000. This textbook has an indefinite useful
life. How should these two copyrights be reported on Sinise’s balance
sheet as of December 31, 2014?
4) Alatorre purchased a patent from Vaina Co. for $1,000,000 on
January 1, 2012. The patent is being amortized over its remaining legal
life of 10 years, expiring on January 1, 2022. During 2014, alatorre
determined that the economic benefits of the patent would not last
longer tha n 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, 2014?
5) Alatorre bought a franchise from Alexandar Co. on January 1,
2013, for $400,000. The carrying amount of the franchise on
Alexandar’s books on January 1, 2013, was $500,000. The franchise
agreement had an estimated useful life of 30 years. Because Alatorre
must enter a competitive bidding at the end of 2015, it is unlikely that
franchise will be retained beyond 2022.what amount should be
amortized for the year ended December 31, 2014?
6) On January 1, 2014, alatorre incurred organization costs of
$275,000. What amount of organization expense should be reported in
2014?