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On January 1, 2022. Cullumber Company had a balance of $359.500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Purchased a patent (6-year life) $324,450. July 1 Acquired a 8-year franchise; expiration date July 1, 2,030, $612,000. Sept. 1 Research and development costs $184,000. Jan. 2

On January 1, 2022. Cullumber Company had a balance of $359.500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Purchased a patent (6-year life) $324,450. July 1 Acquired a 8-year franchise; expiration date July 1, 2,030, $612,000. Sept. 1 Research and development costs $184,000. Jan. 2

FINANCIAL ACCOUNTING
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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On January 1, 2022, Cullumber Company had a balance of $359.500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Jan. 2 Purchased a patent (6-year life) $324,450. Acquired a 8-year franchise; expiration date July 1, 2,030, $612,000. Research and development costs $184,000. July 1 Sept. 1
Transcribed Image Text:On January 1, 2022, Cullumber Company had a balance of $359.500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions. Jan. 2 Purchased a patent (6-year life) $324,450. Acquired a 8-year franchise; expiration date July 1, 2,030, $612,000. Research and development costs $184,000. July 1 Sept. 1
x Your answer is incorrect. Indicate what the intangible asset account balances should be on December 31, 2022. Goodwill $ Patent Franchise $ $ 0 54075 38250
Transcribed Image Text:x Your answer is incorrect. Indicate what the intangible asset account balances should be on December 31, 2022. Goodwill $ Patent Franchise $ $ 0 54075 38250
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