On January 2, 2004, Judd Co. bought a trademark from Krug Co. for $ 500,000. Judd retained an independent consultant, who estimated the trademark ' s remaining life to be unlimited because the trademark will be renewed indefinitely. Its unamortized cost on Krug ' s accounting records was $ 380,000. At the time of sale, Krug estimated the useful life of the trademark to be 50 years. In Judd ' s December 31, 2004 balance sheet, what amount should be reported as accumulated amortization?
Question 9
Cart Co. purchased an office building and the land on which it is located for $ 750,000 cash and an existing $ 250,000 mortgage. For realty tax purposes, the property is assessed at $ 960,000, 60 % of which is allocated to the building. At what amount should Cart record the building?
Question 10
Up Company owns 60 % of SideCo, and Down Company owns the other 40 % of SideCo. Up Company and Down Company are competitors in the same market. Which one of the following sets reflects the most likely level of influence each company has over SideCo?
Question 11
On July 1, 2005, Casa Development Co. purchased a tract of land for $ 1,200,000. Casa incurred additional costs of $ 300,000 during the remainder of 2005 in preparing the land for sale. The tract was subdivided into residential lots as follows: Using the relative sales value method, what amount of costs should be allocated to the Class A lots?
Question 12