Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ans of balance sheet correctly The intangible assets and goodwill reported by Ivanhoe Corporation at December 31, 2020, follow: Copyrights (#1) $ 35,740 Less: Accumulated

ans of balance sheet correctly

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

The intangible assets and goodwill reported by Ivanhoe Corporation at December 31, 2020, follow: Copyrights (#1) $ 35,740 Less: Accumulated amortization 17.870 $ 17,870 Trademarks 50,390 Goodwill 119,060 Total $ 187,320 A copyright (#1) was acquired on January 1, 2019. and has a useful life of four years. The trademarks were acquired on January 1, 2017. and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2021: Jan. 5 Paid $ 6,920 in legal costs to successfully defend the trademarks against infringement by another company. Developed a new product, incurring $ 201,940 in research and $ 49,500 in development costs with probable future benefits. The product is expected to have a useful life of 18 years. July Sept. Paid $ 55,670 to a popular hockey player to appear in commercials advertising the company's products. The commercials will air in early September. Oct. Acquired another copyright (#2) for $ 159,000. The new copyright has a useful life of six years. 3: Dec. Determined the fair value of the goodwill to be $ 86,270. There was no indication that the copyrights or trademarks were impaired. Date Account Titles and Explanation Debit Jan. 5 Trademarks 6.920 Cash July 1 V Research Expenses 201940 Cash (To record research expense) July 1 V Development Costs 49500 Cash (To record development costs) 55670 Sept. 1 Advertising Expense 159000 Oct. 1 V Copyrights - Accumulated Amortization - Copyrights (To record amortization on copyrights acquired on January 1, 2019) Dec. Amortization Expense Accumulated Amortization - Copyrights (To record amortization on copyrights acquired on October 1, 2021) h Dec. Amortization Expense 1375 Accumulated Amortization -Development Costs (To record amortization expense on development cost) Dec. Impairment Loss 1 IVANHOE CORPORATION Statement of Financial Position (Partial) December 31, 2021 Assets Intangible assets: Intangible Assets and Goodwill V Copyrights Less Accumulated Amortization - Copyrights s[ Development Costs Less Accumulated Amortization - Copyrights > Indefinite-Life Intangible Assets Trademarks Total Intangible Assets > Goodwill IVANHOE CORPORATION Statement of Financial Position (Partial) December 31, 2021 Assets lwill $ cumulated Amortization - Copyrights $ cumulated Amortization - Copyrights ssets S

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Data And Analytics In Accounting An Integrated Approach

Authors: Guido Geerts, Ann C. Dzuranin, Margarita Lenk

1st Edition

1119722993, 978-1119722991

More Books

Students also viewed these Accounting questions

Question

What are the main strengths of the behavioral interview?

Answered: 1 week ago

Question

Explain the issues of safety unique to small businesses.

Answered: 1 week ago

Question

Describe downsizing.

Answered: 1 week ago

Question

Discuss compensation for contingent workers.

Answered: 1 week ago