Examlex
Journal entries for impairment of intangible assets
Patagonia Corp., a large, privately held company, is preparing its year-end entries. As senior accountant, you have been asked to prepare the entries related to the company's intangible assets.
Patagonia currently carries the following intangible assets* on its balance sheet:
*Current year amortization has already been recorded.
The following additional information is available:
After recent negative press releases relating to the technology that underlies the patent, the company has carried out a recoverability test that indicates that the patent's carrying value is higher than its undiscounted future net cash flows. The patent's fair value has now been estimated at $ 84,000.
The item classified as "Other intangibles" relates to research costs that the company incurred in the current year. According to a statement from the company's President, "The costs were incurred with the intention to gain new knowledge. At the moment we don't know exactly how to use this information, but we are confident that eventually we will be able to use it."
Instructions
Based on the information provided, prepare all journal entries that are required to adjust Patagonia's records as would be required under ASPE.
Organizational Commitment
The psychological attachment and loyalty an employee feels towards their organization, often predicting retention and engagement levels.
Interesting Work
Tasks or projects that are engaging, stimulating, and hold the attention of the employee or participant, often leading to increased job satisfaction.
Turnover Intentions
The extent to which an employee plans or intends to leave their current position or organization.
Organization Size
The magnitude of an organization in terms of its dimensions, such as the number of employees, the scale of operations, or the market reach.
Q8: What are the advantages for a manufacturer
Q18: Golden Goose Corp. has a piece of
Q39: For a kanban system to work properly,
Q50: Liberia Corporation exchanged 2,000 shares of its
Q60: The three ways information adds value, ranked
Q61: Which of the following is INCORRECT regarding
Q68: Significant influence<br>Describe how to determine if an
Q75: Which of the following is correct regarding
Q83: Which step in the top down model
Q86: The rate of return on assets (ROA)