Taraz Company paid $500,000 to purchase the following portfolio of intangibles with estimated fair values as indicated:

Question:

Estimated

Fair Value

Internet domain name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000

Order backlog . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

In-process research and development . . . . . . . . . . . . . . . . . . . . . . . 200,000

Operating permit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

In addition, Taraz spent $300,000 to run an advertising campaign to boost its image in the local community. Make the journal entries necessary to record the purchase of the intangibles and the payment for the advertising.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...