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The following events occurred for johnson company

25/04/2021 Client: muhammad11 Deadline: 2 Day

BE12-13 Sinise Industries acquired two copyrights during 2014. One copyright related to a textbook 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 copyright (a history research textbook) was purchased from University 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.

E12-4 (Intangible Amortization) Presented below is selected information for Alatorre Company.

1.Altorre purchased a patent from Vania 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 accumulated amortization, at December 31, 2014?

2.Alatorre bought a franchise from Alexander Company on January 1, 2013, for $400,000. The carrying amount of the franchise on Alexander's book 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 the franchise will be retained beyond 2022. What amount should be amortized for the year ended December 31, 2014?

3.On January 1, 2014, Alatorre incurred organization costs of $275,000. What amount of organization expense should be reported in 2014?

4.Alatorre purchased the license for distribution of a popular consumer product on January 1, 2014, for $150,000. It is expected that this product will generate cash flows for an indefinite period of time. The license has an initial term of 5 years but by paying a nominal fee, Alatorre can renew the license indefinitely for successive 5-year term. What amount should be amortized for the year ended December 31, 2014?

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