The following cash transactions may have affected Intanglble assets and goodwill during 2021: Jan. Pald $ 6,920 In legal costs to successfully defend the trademarks agalnst Infringement by another company. Developed a new product, Ineurring $ 201,940 In research and $ 49,500 In development costs with probable future benefits. The product Is expected to have a useful life of 18 years. July 1. Pald $ 55,670 toa popular hoekey player to appear In commerelals advertlsing the company's products. The commerclals wll alr In early September. Sept. Oct. Acqulred another copyright (#2) for $ 159,000. The new copyright has a useful Ilfe of sbx years. Determined the falr value of the goodwill to be 3 86.270. There was no Indicatlon that the copyrights or trademarks were Impaired. Dec. 31
The following cash transactions may have affected Intanglble assets and goodwill during 2021: Jan. Pald $ 6,920 In legal costs to successfully defend the trademarks agalnst Infringement by another company. Developed a new product, Ineurring $ 201,940 In research and $ 49,500 In development costs with probable future benefits. The product Is expected to have a useful life of 18 years. July 1. Pald $ 55,670 toa popular hoekey player to appear In commerelals advertlsing the company's products. The commerclals wll alr In early September. Sept. Oct. Acqulred another copyright (#2) for $ 159,000. The new copyright has a useful Ilfe of sbx years. Determined the falr value of the goodwill to be 3 86.270. There was no Indicatlon that the copyrights or trademarks were Impaired. Dec. 31
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 8P
Related questions
Question
![The Intanglble assets and goodwlll reported by Ivanhoe Corporatlon at December 31, 2020, follow:
Copyrights (#1)
$35,740
Less: Accumulated amortlzatlon
17.870
$ 17,870
Trademarks
50,390
Gంoరnll
119,060
Total
$ 187,320
A copyright (#1) was acqulred on January 1, 2019, and has a useful life of four years. The trademarks were acqulred on January 1,
2017, and are expected to have an Indefinlte lfe. The company has a December 31 year end and prepares adjusting Journal entrles
annually.
The following cash transactlons may have affected Intanglble assets and goodwll during 2o21:
Jan.
Pald S 6,920 In legal costs to successfully defend the trademarks agalnet Infringement by another company.
July
Developed a newproduct, Incurring 5 201,940 In research and S 49.500 In development costs with probable
fueure benefits. The product Is expected to havea useful life of 18 years,
1.
Pald 5 55,670 to a popular hockey player to appear In commerdlals advertising the company's products. The
commerclals will alrIn early September.
Sept.
1.
Oct.
Acculred another copyright (#2) forS159000 The new copyright has 2 Useful ife of sx years.
Determined the falr value ofthe goodwll tobe 3 86.270. There was no Indication that the copyrights or
trademarkevvereImpaired,
Dec.
31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bcb22fa-f91f-4e0d-8193-1cb3b9ae0f86%2Fe9d15b64-7fbb-4730-8e9b-154fd3ab5282%2Foiljssg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Intanglble assets and goodwlll reported by Ivanhoe Corporatlon at December 31, 2020, follow:
Copyrights (#1)
$35,740
Less: Accumulated amortlzatlon
17.870
$ 17,870
Trademarks
50,390
Gంoరnll
119,060
Total
$ 187,320
A copyright (#1) was acqulred on January 1, 2019, and has a useful life of four years. The trademarks were acqulred on January 1,
2017, and are expected to have an Indefinlte lfe. The company has a December 31 year end and prepares adjusting Journal entrles
annually.
The following cash transactlons may have affected Intanglble assets and goodwll during 2o21:
Jan.
Pald S 6,920 In legal costs to successfully defend the trademarks agalnet Infringement by another company.
July
Developed a newproduct, Incurring 5 201,940 In research and S 49.500 In development costs with probable
fueure benefits. The product Is expected to havea useful life of 18 years,
1.
Pald 5 55,670 to a popular hockey player to appear In commerdlals advertising the company's products. The
commerclals will alrIn early September.
Sept.
1.
Oct.
Acculred another copyright (#2) forS159000 The new copyright has 2 Useful ife of sx years.
Determined the falr value ofthe goodwll tobe 3 86.270. There was no Indication that the copyrights or
trademarkevvereImpaired,
Dec.
31
![Prepare Journal entrles torecord the above transactlons. (List all debit entries before credit entries. Credit account titles are
automatically Indented whinghe amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles
and enter 0for the amounts. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
(To record research expense)
(To record development costs)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bcb22fa-f91f-4e0d-8193-1cb3b9ae0f86%2Fe9d15b64-7fbb-4730-8e9b-154fd3ab5282%2Fbwo9r8k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Prepare Journal entrles torecord the above transactlons. (List all debit entries before credit entries. Credit account titles are
automatically Indented whinghe amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles
and enter 0for the amounts. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
(To record research expense)
(To record development costs)
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