Chapter 11, Problem 11.18E

1.

To determine

Amortization:

Itis the process of allocating the value of the intangible assets over its estimated useful life.

Intangible Assets:

These are the long-term assets having no physical existence. However, the benefits provided by these assets are used by the company for a long period of time. Example: Patent, Trademark, Goodwill, Copyrights.

To Prepare: The entries necessary for the year 2016 through 2018.

2.

To determine

To Prepare: A schedule showing the intangible asset section of the balance sheet of Company J as on December 31, 2016.