Question 15 . ( TCO D ) On January 1 , Patterson , Inc . issued $ 5,000,000 , 9 % bonds for $ 4,695,000 . The market rate of interest for these bonds is 10 %. Interest is payable annually on December 31 . Patterson uses the effective-interest method of amortizing bond discount . At the end of the first year , Patterson should report unamortized bond discount of
$ 274,500 $ 285,500 $ 258,050 $ 255,000
Question 1 . ( TCO C ) Barkley Corp . obtained a trade name in January 2009 , incurring legal costs of $ 15,000 . The company amortizes the trade name over 8 years . Barkley successfully defended its trade name in January 2010 , incurring $ 4,900 in legal fees . At the beginning of 2011 , based on new marketing research , Barkley determines that the fair value of the trade name is $ 12,000 . Estimated total future cash flows from the trade name are $ 13,000 on January 4 , 2011 .
Instructions :
Prepare the necessary journal entries for the years ending December 31 , 2009 , 2010 , and 2011 . Show all computations .