Acquisition and Amortization of Intangible Assets

TLM Technologies had these transactions related to intangible assets during the year.

Jan. 2	Purchased a patent from Luna Industries for $200,000. The remaining legal life of the patent is 15 years, and TLM expects the patent to be useful for 8 years.
Jan. 5	Paid legal fees in a successful legal defense of the patent of $80,000.
June 29	Registered a trademark with the federal government. Registration costs were $12,400. TLM expects to use the trademark indefinitely.
Sept. 2	Paid research and development costs of $500,000.

Required:

Question Content Area

1. Prepare the journal entries necessary to record the transactions. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Jan. 2	Amortization ExpenseCashNo Entry RequiredPatentResearch and Development Expense	- Select -	- Select -
	Amortization ExpenseCashNo Entry RequiredPatentResearch and Development Expense	- Select -	- Select -
Jan. 5	CashNo Entry RequiredPatentAmortization ExpenseResearch and Development Expense	- Select -	- Select -
	CashNo Entry RequiredPatentAmortization ExpenseResearch and Development Expense	- Select -	- Select -
June 29	CashNo Entry RequiredResearch and Development ExpenseTrademarkAmortization Expense	- Select -	- Select -
	CashNo Entry RequiredResearch and Development ExpenseTrademarkAmortization Expense	- Select -	- Select -
Sept. 2	CashNo Entry RequiredPatentResearch and Development ExpenseTrademark	- Select -	- Select -
	CashNo Entry RequiredPatentResearch and Development ExpenseTrademark	- Select -	- Select -

Question Content Area

2. Prepare the entries necessary to record amortization expense for the intangible assets. If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Dec. 31	Amortization ExpenseNo Entry RequiredPatentResearch and Development ExpenseTrademark	- Select -	- Select -
	Amortization ExpenseNo Entry RequiredPatentResearch and Development ExpenseTrademark	- Select -	- Select -
Dec. 31	CashNo Entry RequiredPatentResearch and Development ExpenseTrademark	- Select -	- Select -
	Amortization ExpenseCashNo Entry RequiredResearch and Development ExpenseTrademark	- Select -	- Select -

Question Content Area

3. What is the balance of the intangible assets at the end of the year?

Patent	$fill in the blank 8e15e3ff3fa7035_1
Trademark	$fill in the blank 8e15e3ff3fa7035_2