Accounting Problem

Topic: Intangible Assets

Instructions

During 2020, a trademark and a patent were purchased. For details, see Intangible Assets.png

The intangible assets are amortized on a straight-line method.

To test for impairment, the following items were determined regarding the trademark:

Value in use

$110,000

FV less costs to sell

$115,500

Provide any Adjusting Journal Entries pertaining to Intangible Assets for the year-ended December 31, 2020. Show all relevant calculations.

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Date Useful Accumulated Carrying Item Developed Cost Life Amortization Amortization Value 2020 to 12/31/20 Trademark 2020-01-01 126,750 10 Yrs Patent 2020-01-01 35,000 3 yrs 161,750