Established in 2016, Marshall Company has created a single account for all intangible assets.The following summary describes
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Question:
Established in 2016, Marshall Company has created a single account for all intangible assets. The following summary describes the debit entries recorded in 2017.
1/2/17 | Purchased patent (8 years lifetime) | 350.000 $ | ||
1/4/17 | Goodwill of purchase (indefinite life) | 360.000 | ||
1/7/17 | Franchise purchased for 10 years; expiry date 1/7/27 | 450.000 | ||
1/8/17 | Payment of copyright (5 years lifetime) | 156.000 | ||
1/9/17 | Research and development costs | 215.000 | ||
1.531.000 $ |
Necessary
Prepare the necessary entry to clear the Intangible Assets account and create separate accounts for different types of intangible assets.
Make the entry as of 31 December 2017 and record the required depreciation
Related Book For
Intermediate Accounting
ISBN: 978-1118742976
16th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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