Krelser Company had three intangible assets at the end of 2020 (end of the accounting year): a. A patent was purchased from J. Miller on January 1, 2020, for a cash cost of $5,700. When purchased, the patent had an estimated life of fifteen years. b. A trademark was registered with the federal government for $14,000. Management estimated that the trademark could be worth as much as $200,000 because it has an indefinite life. c. On January 1, 2020, computer licensing rights were purchased for $61,600. The rights are expected to have a four-year useful life to the company.

Krelser Company had three intangible assets at the end of 2020 (end of the accounting year): a. A patent was purchased from J. Miller on January 1, 2020, for a cash cost of $5,700. When purchased, the patent had an estimated life of fifteen years. b. A trademark was registered with the federal government for $14,000. Management estimated that the trademark could be worth as much as $200,000 because it has an indefinite life. c. On January 1, 2020, computer licensing rights were purchased for $61,600. The rights are expected to have a four-year useful life to the company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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