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The intangible assets section of Martinez Corporation's balance sheet at December 31, 2025, is presented here. Patents ($57,600 cost less $5,760 amortization) Copyrights ($34,560 cost less $24,192 amortization). Total Jan. 2 Jan-June The patent was acquired in January 2025 and has a useful life of 10 years. The copyright was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2026. Sept. 1 $51,840 Oct. 1 10,368 $62,208 Paid $44,928 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $220,800 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $19,200. Paid $38,400 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for $192,000. The copyright has a useful life and legal life of 50 years.

The intangible assets section of Martinez Corporation's balance sheet at December 31, 2025, is presented here. Patents ($57,600 cost less $5,760 amortization) Copyrights ($34,560 cost less $24,192 amortization). Total Jan. 2 Jan-June The patent was acquired in January 2025 and has a useful life of 10 years. The copyright was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2026. Sept. 1 $51,840 Oct. 1 10,368 $62,208 Paid $44,928 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $220,800 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $19,200. Paid $38,400 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for $192,000. The copyright has a useful life and legal life of 50 years.

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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Prepare journal entries to record the transactions. (List debit entry before credit entry. Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Transcribed Image Text:Prepare journal entries to record the transactions. (List debit entry before credit entry. Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
The intangible assets section of Martinez Corporation's balance sheet at December 31, 2025, is presented here. Patents ($57,600 cost less $5,760 amortization) Copyrights ($34,560 cost less $24,192 amortization) Total Jan. 2 Jan-June The patent was acquired in January 2025 and has a useful life of 10 years. The copyright was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2026. Sept. 1 $51,840 Oct. 1 10,368 $62,208 Paid $44,928 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $220,800 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $19,200. Paid $38,400 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for $192,000. The copyright has a useful life and legal life of 50 years.
Transcribed Image Text:The intangible assets section of Martinez Corporation's balance sheet at December 31, 2025, is presented here. Patents ($57,600 cost less $5,760 amortization) Copyrights ($34,560 cost less $24,192 amortization) Total Jan. 2 Jan-June The patent was acquired in January 2025 and has a useful life of 10 years. The copyright was acquired in January 2019 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 2026. Sept. 1 $51,840 Oct. 1 10,368 $62,208 Paid $44,928 legal costs to successfully defend the patent against infringement by another company. Developed a new product, incurring $220,800 in research and development costs. A patent was granted for the product on July 1, and its useful life is equal to its legal life. Legal and other costs for the patent were $19,200. Paid $38,400 to a quarterback to appear in commercials advertising the company's products. The commercials will air in September and October. Acquired a copyright for $192,000. The copyright has a useful life and legal life of 50 years.
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