Crane Data Incorporated collects customer data through a permission-based direct response survey to provide marketing information...
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Crane Data Incorporated collects customer data through a permission-based direct response survey to provide marketing information to the consumer-packaged goods industry. The customer list is a database that includes customer names, contacts, demographic and consumer purchasing information. The cost of creating the customer list is $8,190,000. It has a limited life and is amortized on a straight-line basis over 15 years. Crane has determined that the list has a residual value of $81,900. Prepare the appropriate journal entries for the capitalization of the asset and the annual amortization. Crane Data Incorporated collects customer data through a permission-based direct response survey to provide marketing information to the consumer-packaged goods industry. The customer list is a database that includes customer names, contacts, demographic and consumer purchasing information. The cost of creating the customer list is $8,190,000. It has a limited life and is amortized on a straight-line basis over 15 years. Crane has determined that the list has a residual value of $81,900. Prepare the appropriate journal entries for the capitalization of the asset and the annual amortization.
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Journal entry for capitalization of the asset Debit Customer List Ass... View the full answer
Related Book For
Statistics For Managers Using Microsoft Excel
ISBN: 9780134173054
8th Edition
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat
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