Chapter 18, Problem 13SPA

INTANGIBLE LONG-TERM ASSETS Track Town Co. had the following transactions involving intangible assets:

Jan.	1	Purchased a patent for leather soles for $10,000 and estimated its useful life to be 10 years.
Apr.	1	Purchased a copyright for a design for $15,000 with a life left on the copyright of 25 years. The estimated remaining (economic) life of the copyright is five years.
July	1	Signed a five-year franchise agreement and opened a Starting Line high-tech running shoe store. Paid $50,000 to the franchisor.

REQUIRED

1. 1. Using the straight-line method, calculate the amortization of the patent, copyright, and franchise.
2. 2. Prepare general journal entries to record the end-of-year amortizations.