Powerglide Company, organized in 2011, has set up a single

Powerglide Company, organized in 2011, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2012.

Purchased patent (8-year life) Goodwill (indefinite life) Purchased franchise with 10-year life; expiration date 7/1/22

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, 2012, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-lineamortization.)

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...