Accounting topic

Book value of patent right at the end of 2005 = 300-300/10 * 4 =180.

The impairment reserve should be 180- 100=80.

The provision for impairment of non-patented technology should be 150- 130=20.

The accounting entries are as follows:

Debit: Asset impairment loss-patent right 80

-Non-patented technology 20

Loan: intangible assets-patent right 80

-Non-patented technology 20

Amount to be assessed at the end of 2006

The patent right is 100/5=20

The non-patented technology is 130/4=32.5.

The accounting entries are as follows:

Debit: management expenses-accumulated amortization 52.5

Loan: accumulated amortization 52.5

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This should be the theme of the book. Try to find the answer yourself, so that your memory will be deeper.