Haley Company, organized in 2014, has these transactions related to intangible assets in that year: Jan. 2
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Jan. 2 | Purchased a patent (5-year life) | $286,900 |
Apr. 1 | Goodwill acquired as a result of purchased business (indefinite life) | $413,900 |
July 1 | Acquired a 9-year franchise; expiration date July 1, 2023 | $591,400 |
Sept.1 | Research and development costs | $183,500 |
1). Prepare the necessary entries to record these transactions related to intangibles. All costs incurred were for cash.
2). Make an entry as of December 31, 2014, recording any necessary amortization.
3). Indicate what the intangible asset account balances (patent, goodwill, and franchise) should be on December 31, 2014.
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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