Marshall Company, organized in 2016, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2017.
1/2/17 Purchased patent (8-year life)............................................$ 350,000
4/1/17Purchase goodwill (indianite life)...........................................360,000
7/1/17Purchased franchise with 10-year life; expiration date 7/1/27..........450,000
8/1/17Payment of copyright (5-year life)..........................................156,000
9/1/17Research and development costs............................................215,000
$1,531,000
Instructions
Prepare the necessary entries to clear the intangible assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2017, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)