ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 197

2) Treasure Land Corporation incurred the following costs in 2014.
Prepare the necessary 2014 journal entry or entries for Treasure Land.

3) Sinise Industries acquired two copyrights during 2014. One
copy right related to a text book that was developed internally at a
cost of $9,900. This textbook is estimated to have a useful life of 3
years from September 1, 2014, the date it was published. The second
copy right (a history research textbook) was purchased from
University press on December 1, 2014, for $24,000. This textbook has
an indefinite useful life. How should these two copyrights be reported
on Sinise’s balance sheet as of December 31, 2014?

4) Alatorre purchased a patent from Vaina Co. for $1,000,000 on
January 1, 2012. The patent is being amortized over its remaining
legal life of 10 years, expiring on January 1, 2022. During 2014,
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, 2014?

5) Alatorre bought a franchise from Alexandar Co. on January 1,
2013, for $400,000. The carrying amount of the franchise on
Alexandar’s books on January 1, 2013, 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 2015, it is unlikely that
franchise will be retained beyond 2022.what amount should be
amortized for the year ended December 31, 2014?