balance sheet, what amount should Jase report as patent, net of
accumulated amortization?
Question 7
Weir Co. uses straight-line depreciation for its property, plant,
and equipment, which, stated at cost, consisted of the
following: Weir's depreciation expense for 2005 and 2004 was
$55,000 and $50,000, respectively. What amount was debited to
accumulated depreciation during 2005 because of property,
plant, and equipment retirements?
Question 8
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