Cullumber Limited organized late in 2022 and set up a single account for all intangible assets. The following summary shows the entries in 2023 (all debits) that have been recorded in Intangible Assets since then: Jan. 2: Purchased patent (8-year life) - $342,000 Mar. 31: Costs to search for new ways to apply patent that was purchased on Jan. 2 - $21,000 Apr. 1: Purchased goodwill (indefinite life) - $315,000 July 1: Purchased franchise with 10-year life; expiration date July 1, 2033 - $248,000 July 1: Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 - S 33,000 Aug. 1: Payment for copyright (5-year life) - $132,000 Aug. 1: Purchased trademark (3-year life) - $14,400 Aug. 1: Purchased customer lists (2-year life) S9, 600 Sept. 1: Research costs - $234,000 Total: $1,349,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cullumber Limited organized late in 2022 and set up a single account for all intangible assets. The following
summary shows the entries in 2023 (all debits) that have been recorded in Intangible Assets since then:
Jan. 2: Purchased patent (8-year life) - $342,000
Mar. 31: Costs to search for new ways to apply patent that was purchased on Jan. 2 - $21,000
Apr. 1: Purchased goodwill (indefinite life) - $315,000
July 1: Purchased franchise with 10-year life; expiration date July 1, 2033 - $248,000
July 1: Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 - S
33,000
Aug. 1: Payment for copyright (5-year life) - $132,000
Aug. 1: Purchased trademark (3-year life) - $14,400
Aug. 1: Purchased customer lists (2-year life) S9, 600
Sept. 1: Research costs - $234,000
Total: $1,349,000
Transcribed Image Text:Cullumber Limited organized late in 2022 and set up a single account for all intangible assets. The following summary shows the entries in 2023 (all debits) that have been recorded in Intangible Assets since then: Jan. 2: Purchased patent (8-year life) - $342,000 Mar. 31: Costs to search for new ways to apply patent that was purchased on Jan. 2 - $21,000 Apr. 1: Purchased goodwill (indefinite life) - $315,000 July 1: Purchased franchise with 10-year life; expiration date July 1, 2033 - $248,000 July 1: Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 - S 33,000 Aug. 1: Payment for copyright (5-year life) - $132,000 Aug. 1: Purchased trademark (3-year life) - $14,400 Aug. 1: Purchased customer lists (2-year life) S9, 600 Sept. 1: Research costs - $234,000 Total: $1,349,000
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