Basket Purchase of Intangible Assets Taraz Company paid $500,000 to purchase the following portfolio of intangibles with estimated fair values as indicated: Estimated Fair Value Internet domain name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000 Order backlog. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 In-process research and development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 Operating permit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 In addition, Taraz spent $300,000 to run an advertising campaign to boost its image in the local community. Make the journal entries necessary to record the purchase of the intangibles and the payment for the advertising.
Basket Purchase of Intangible Assets
Taraz Company paid $500,000 to purchase the following portfolio of intangibles with estimated fair values as indicated:
Estimated Fair Value
Internet domain name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000
Order backlog. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
In-process research and development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Operating permit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
In addition, Taraz spent $300,000 to run an advertising campaign to boost its image in the local community. Make the
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