Strong Co. purchased a trademark from Wall Co. for $60,000 on July 1, 2019. Expenditures of...

Strong Co. purchased a trademark from Wall Co. for $60,000 on July 1, 2019. Expenditures of $10,000 for successful litigation in defence of the trademark were paid on July 1, 2021. Strong estimates that the useful life of the trademark will be 20 years from the date of acquisition.

Required

Calculate the carrying value of the trademark at December 31, 2021.

Solutions

Expert Solution

Particulars	Purchase cost	Legal fee	Total
Amount paid	60,000	10,000
2019 amortizatin	(3,000)	-
2020 amortization	(3,000)	-
2021 amortization	(3,000)	(286)
Carrying value	51,000	9,714	60,714

Answer is:

60,714

ekkarill92 answered 1 year ago

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