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