Problem 9-5A (Part Level Submission) The intangible assets section of Culver Cor

Question

Problem 9-5A (Part Level Submission) The intangible assets section of Culver Corporation's balance sheet at December 31, 2017, is presented here Patents ($89,900 cost less $7,100 amortization) Copyrights ($42,000 cost less $31,500 amortization) Total $82,800 10,500 $93.300 The patent was acquired in January 2017 and has a useful life of 10 years. The copyright was acquired in January 2011 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2018. Jan. 2 Paid $45,000 legal costs to successfully defend the patent against infringement by another company $260,000 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $30,000. to appear in commercials advertising the company's products. The commercials will air in September and October Sept. 1 Paid $68,500 to a quarterback a copyright for $203,000. The copyright has a useful ife and lega f or So years.

Explanation / Answer

SOLUTION

Date Accounts title and Explanations Debit ($) Credit ($) Dec. 31 Amortization Expense - Patents 13,990   Patents [($89,900/10) + ($45,000/9)] 13,990 (To record amortization of Patents) Dec. 31 Amortization Expense- Franchise 5,215   Franchise [(42,000/10) + ($20,3000/50 * 3/12)] 5,215 (To record amortization of Franchise)

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.