Chapter 11, Problem 11.8P

Requirement – 1

To determine

Amortization:

It is the process of allocating the value of an intangible asset over its definite 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 year-end adjusting journal entries to record amortization expenses on the intangible assets.

Requirement – 2

To determine

To prepare: The intangible assets section of balance sheet for the year ended December 31, 2016.