The intangible assets and goodwill reported by Sunland Corporation at December 31, 2020, follow:Copyrights (#1)$36,120Less: Accumulatedamortization$ 18,06018,060Trademarks53,130Goodwill124,750Total$195,940A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017, and are expected to have anindefinite life. The company has a December 31 year end and prepares adjusting journal entries annually.The following cash transactions may have affected intangible assets and goodwill during 2021:Jan.Paid $6,690 in legal costs to successfully defend thetrademarks against infringement by another company.JulyDeveloped a new product, incurring $193,940 in research and$48,300 in development costs with probable future benefits.The product is expected to have a useful life of 21 years.Sept.Paid $59,790 to a popular hockey player to appear incommercials advertising the company's products. Thecommercials will air in early September.Acquired another copyright (#2) for $171,000. The newcopyright has a useful life of six years.Oc.Dec.31Determined the fair value of the goodwill to be $81,050. Therewas no indication that the copyrights or trademarks wereimpaired. Show the presentation of the intangible assets and goodwill on the statement of financial position at December 31, 2021. (ListIntangible assets in order of Finite Life Intangible Assets and Indefinite-life Intangible Assets. Record Development Costs before Copyrights.)SUNLAND CORPORATIONStatement of Financial Position (Partial)December 31, 2021AssetsIntangible assets:Intangible Assets and GoodwillCopyrightsLess v:Accumulated Amortization - Copyrights48300Development Costs

Intangible Assets It is important for the business entity to record the intangible assets and its…

The intangible assets and goodwill reported by Sunland Corporation at December 31, 2020, follow: Copyrights (#1) $36,120 $ 18,060 Less: Accumulated amortization 18,060 Trademarks 53,130 Goodwill 124,750 Total $195,940 A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2021: Paid $6,690 in legal costs to successfully defend the trademarks against infringement by another company. Jan. July Developed a new product, incurring $193,940 in research and $48,300 in development costs with probable future benefits. The product is expected to have a useful life of 21 years. 1 Sept. Paid $59,790 to a popular hockey player to appear in commercials advertising the company's products. The

The intangible assets and goodwill reported by Sunland Corporation at December 31, 2020, follow: Copyrights (#1) $36,120 $ 18,060 Less: Accumulated amortization 18,060 Trademarks 53,130 Goodwill 124,750 Total $195,940 A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2021: Paid $6,690 in legal costs to successfully defend the trademarks against infringement by another company. Jan. July Developed a new product, incurring $193,940 in research and $48,300 in development costs with probable future benefits. The product is expected to have a useful life of 21 years. 1 Sept. Paid $59,790 to a popular hockey player to appear in commercials advertising the company's products. The

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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