Scientific Genius Company had the following balances in its intangible assets accounts at the beginning of the year. The trademarks have a remaining useful life of 15 years, and the copyright has a remaining useful life of nine years.
Trademarks ........ $45,000
Copyrights ....... 36,000
Goodwill ......... 50,000
Transactions during the year are as follows:
a. At the beginning of the year, Scientific Genius filed for a new trademark. The costs totaled $30,000. Its useful life is estimated at 15 years.
b. Scientific Genius incurred R&D costs of $75,000 related to new product development. No new products have been identified.
c. Scientific Genius evaluated the goodwill for impairment and reduced its book value by $5,000.
d. Scientific Genius successfully defended one of its copyrights in court. Fees totaled $18,000.

1. Show each of the transactions in the accounting equation, including any adjustments that would need to be made for the year-end financial statements.
2. Prepare the intangible assets section of the balance sheet at year end.

  • CreatedSeptember 01, 2014
  • Files Included
Post your question