a. What amount of research and experimental expenses for 2023, 2024, and 2025 may Bethany deduct? Note: Round your final answers to the nearest whole dollar amount.
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- ! Required information [The following information applies to the questions displayed below.] Bethany incurred $20,800 in research and experimental costs for developing a specialized product during July 2023. Bethany went through a lot of trouble and spent $10,400 in legal fees to receive a patent for the product in August 2025. Bethany expects the patent to have a remaining useful life of 10 years. Note: Do not round intermediate calculations. b. How much patent amortization expense would Bethany deduct in 2025? Deductible patent amortization expenseRuby Ltd. purchased a patent for $450,000 on September 1, 2020. It had a useful life of 10 years. On January 1, 2022, Ruby spent $220,000 to successfully defend the patent in a lawsuit. Ruby feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2022? $Sandstorm Corporation decides to develop a new line of paints. The project begins in 2023. Sandstorm incurs the following expenses in 2023 in connection with the project: Salaries $170,000 Materials 51,000 Depreciation on equipment 25,500 The benefits from the project were realized starting in July 2024. If an amount is zero, enter "0". What are Sand-storm’s related deductions in 2023 and 2024 in connection with the project?
- Sandstorm Corporation decides to develop a new line of paints. The project begins in 2018. Sandstorm incurs the following expenses in 2018 in connection with the project:Salaries: $85,000Materials: $30,000Depreciation on equipment: $12,500The benefits from the project will be realized starting in July 2019. If an amount is zero, enter "0".If Sandstorm Corporation elects a 60-month deferral and amortization period, there is a $ for 2018 and a $ deduction for 2019.Hello Corporation purchased a patent for $90,000 on September 1, 2020. It had a useful life of 10 years. On January 1, 2022, Hello spent $22,000 to successfully defend the patent in a lawsuit. Hello feels that as of that date, the remaining useful life is 5 years. Calculate the amount that should be reported for patent amortization expense for 2022.Cullumber Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $321,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. 1). The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $111,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,250. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. 2). In 2021, the company successfully defends the patent in extended litigation at a cost of $41,600, thereby extending the patent life to December 31, 2028. What is the proper way to account for this cost? Also, record patent amortization (full year) in 2021.
- Price Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $325,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. Instructions a. What account should be charged for the $325,000, and how should it be shown in the financial statements? b. The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $110,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. c. In 2021, the company successfully defends the patent in extended litigation at a cost of $47,200, thereby extending the patent life to December 31, 2028. What is the proper way to account for this cost? Also, record…Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2018, the company expends $325,000 on a research project, but by the end of 2018, it is impossible to determine whether any benefit will be derived from it. a. What account should be charged for the $325,000, and how should it be shown in the financial statements? b. The project is completed in 2019, and a successful patent is obtained. The R&D costs to complete the project are $130,000 ($36,000 of these costs were incurred after achieving economic viability). The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2019 total $24,000. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2019. c. In 2020, the company successfully defends the patent in extended litigation at a cost of $47,200, thereby extending the patent life to December…Berry Co. purchases a patent on January 1, 2021, for $38,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the amortization expense for the year ended December 31, 2022? Multiple Choice $15,200. $0. $7,600. $38,000.
- During 2022, Brownie Company incurred research and development cost of P272,000 relating to the patent that was granted on July 1, 2022. Cost of registering the patent is P68,000. The patent legal life is 20 years. However, the management expected that the patent will be useful for 10 years only. On December 31, 2022, what amount should be reported as patent, net of accumulated amortization?Cullumber Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2019, the company expends $321,000 on a research project, but by the end of 2019 it is impossible to determine whether any benefit will be derived from it. The project is completed in 2020, and a successful patent is obtained. The R&D costs to complete the project are $111,000. The administrative and legal expenses incurred in obtaining patent number 472-1001-84 in 2020 total $16,250. The patent has an expected useful life of 5 years. Record these costs in journal entry form. Also, record patent amortization (full year) in 2020. Account Titles and Explanation Debit Credit (To record research and development costs) (To record legal and administrative costs) (To record one year’s amortization expense) In 2021, the company successfully defends the patent in extended litigation at a…Ayayai Corporation purchases a patent from Blossom Company on January 1, 2025, for $63,000. The patent has a remaining legal life of 14 years. Ayayai estimates the patent will have a useful life of 10 years, based on expected product innovations in the market. Prepare Ayayai's journal entries to record the purchase of the patent and 2025 amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) Account Titles and Explanation (To record purchase of patents) (To record amortization of patents) Debit Credit
