At maturity on May 30, 2009
1,400,000
Long-term loan- 11% interest, payable on January 1 of each
Year. Principle payable on January 1, 2012
1,000,000
E11-4: (Intangible Amortization) Presented below is selected
information for Alatorre Company.
Alatorre purchased a patent from Vania Co. for $ 1,000,000 on January
1, 2006. The patent is being amortized over its remaining legal life of 10
years, expiring on January 1, 2016. During 2008, Alatorre determined
that the economic benefits of the patent would not last longer than 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, 2008?
Alatorre bought a franchise from Alexander Co on January 1, 2007 for $
400,000. The carrying amount of the franchise on Alexander’s books on
January 1, 2007, 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 2016, it is unlikely that the franchise
will be retained beyond 2016. What amount should be amortized for
the year ended December 31, 2008?
On January 1, 2008, Alatorre incurred organization costs of $ 275,000.
What amount of organization expense should be reported in 2008?
Alatorre purchased the license for distribution of a popular consumer
product on January 1, 2008, for $ 150,000. It is expected that this