A1048 Comprehensive Intangibles-Accounting and Amortization (LO 10-2) Bright Designs Ltd. began operations in 20x5 and, at the end of its first year of operations, reported a balance of $687,100 in an account called "intangibles." Upon further investigation, it is discovered that the account had been debited throughout the year as follows: 5 Jan. Organization costs; legal fees. Economic life is indefinite. $ 11,100 1 Feb. Patent registration; legal fees re: patent with 20 year 5 700 life to be used in research activities. ' 1 July Operating expenses, first six months. 250,800 1 Aug. Goodwill; excess of purchase price of an advertising company paid over tangible assets acquired. 182'40 10 Nov. Copyright acquired; remaining legal life is 29 years but 23 900 economic life is 10 years. ' 30 Nov. Trademark registration; legal fees. The trademark is expected to 9,200 have an indefinite economic life. 5 Dec. Staff training costs; staff is expected to stay with the company for an average of three years; however, there are no 31,600 employment contracts. 31 Dec. Research costs incurred over the year; 40% of all research costs are properly classified as capitalizable development costs. The product developed will begin commercial production next year. 172,400 $687,100 Required: 1. Prepare a correcting entry that reallocates all amounts charged to intangibles to the appropriate accounts. State any assumptions made. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Operating expense 250,800 0 132.400 0 31,600 0 172,400 0 Goodwill (intangible asset) Training expense Research expense Intangibles 637,200 3000000 250,800 0 132,400 9 31,500 0 172,400 9 Operating expense Goodwill (intangible asset) Training expense Research expense Intangibles 637,200 *Recl text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 2. Calculate amortization expense on intangible assets for 2OX5. Straight-line amortization, to the exact month of purchase, is used. All residual values are expected to be zero. (Round your answers to the nearest whole dollars.) Amortization expense: Patent 0 Copyright 0 398 o