The intangible asset section of Roberts Corporation's balance sheet at December 31,1997 , is presented here:

The patent was acquired in January 1997 and has a useful life of 10 years. The copyright was acquired in January 1994 and also has a useful life of 10 years. The following cash transactions may have affected intangible assets during 1998 :

\section*{Instructions}

(a) Prepare journal entries to record the transactions.

(b) Prepare journal entries to record the 1998 amortization expense for intangible assets

(c) Prepare the intangible asset section of the balance sheet at December 31, 1998.

(d) Prepare the note to the financial statements on Roberts Corporation's intangible assets as of December 31, 1998.

Transcribed Image Text:

Patent ($60,000 cost less $6,000 amortization) Copyright ($36,000 cost less $14,400 amortization) Total $54,000 21,600 $75,600