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112.
On June 30, 2011, Cey, Inc. exchanged 2,000 shares of Seely Corp. $30 par value common stock for a patent owned by Gore Co. The Seely stock was acquired in 2011 at a cost of $55,000. At the exchange date, Seely common stock had a fair value of $46 per share, and the patent had a net carrying value of $110,000 on Gore's books. Cey should record the patent at
a. $55,000.
b. $60,000.
c. $92,000.
d. $110,000.
113.
On May 5, 2011, MacDougal Corp. exchanged 2,000 shares of its $25 par value treasury common stock for a patent owned by Masset Co. The treasury shares were acquired in 2010 for $45,000. At May 5, 2011, MacDougal's common stock was quoted at $34 per share, and the patent had a carrying value of $55,000 on Masset's books.
MacDougal should record the patent at
a. $45,000.
b. $50,000.
c. $55,000.
d. $68,000.
114.
Ely Co. bought a patent from Baden Corp. on January 1, 2011, for $300,000. An independent consultant retained by Ely estimated that the remaining useful life at
January 1, 2011 is 15 years. Its unamortized cost on Baden’s accounting records was
$150,000; the patent had been amortized for 5 years by Baden. How much should be amortized for the year ended December 31, 2011 by Ely Co.?
a. $0.
b. $15,000.
c. $20,000.
d. $30,000.
115.
January 2, 2008, Koll, Inc. purchased a patent for a new consumer product for $270,000.
At the time of purchase, the patent was valid for 15 years; however, the patent’s useful life was estimated to be only 10 years due to the competitive nature of the product. On
December 31, 2011, the product was permanently withdrawn from the market under governmental order because of a potential health hazard in the product. What amount should Koll charge against income during 2011, assuming amortization is recorded at the end of each year?
a. $ 27,000
b. $162,000
c. $189,000
d. $216,000
79.On January 3, 2009, Munoz Co. purchased machinery. The machinery has an estimated
useful
On June 30, 2011, Cey, Inc. exchanged 2,000 shares of Seely Corp. $30 par value common stock for a patent owned by Gore Co. The Seely stock was acquired in 2011 at a cost of $55,000. At the exchange date, Seely common stock had a fair value of $46 per share, and the patent had a net carrying value of $110,000 on Gore's books. Cey should record the patent at
a. $55,000.
b. $60,000.
c. $92,000.
d. $110,000.
113.
On May 5, 2011, MacDougal Corp. exchanged 2,000 shares of its $25 par value treasury common stock for a patent owned by Masset Co. The treasury shares were acquired in 2010 for $45,000. At May 5, 2011, MacDougal's common stock was quoted at $34 per share, and the patent had a carrying value of $55,000 on Masset's books.
MacDougal should record the patent at
a. $45,000.
b. $50,000.
c. $55,000.
d. $68,000.
114.
Ely Co. bought a patent from Baden Corp. on January 1, 2011, for $300,000. An independent consultant retained by Ely estimated that the remaining useful life at
January 1, 2011 is 15 years. Its unamortized cost on Baden’s accounting records was
$150,000; the patent had been amortized for 5 years by Baden. How much should be amortized for the year ended December 31, 2011 by Ely Co.?
a. $0.
b. $15,000.
c. $20,000.
d. $30,000.
115.
January 2, 2008, Koll, Inc. purchased a patent for a new consumer product for $270,000.
At the time of purchase, the patent was valid for 15 years; however, the patent’s useful life was estimated to be only 10 years due to the competitive nature of the product. On
December 31, 2011, the product was permanently withdrawn from the market under governmental order because of a potential health hazard in the product. What amount should Koll charge against income during 2011, assuming amortization is recorded at the end of each year?
a. $ 27,000
b. $162,000
c. $189,000
d. $216,000
79.On January 3, 2009, Munoz Co. purchased machinery. The machinery has an estimated
useful