Question
Cullumber Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been
Cullumber Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020.
| 1/2/20 | Purchased patent (7-year life) | $302,400 | ||
| 4/1/20 | Purchase goodwill (indefinite life) | 342,000 | ||
| 7/1/20 | Purchased franchise with 10-year life; expiration date 7/1/30 | 422,000 | ||
| 8/1/20 | Payment of copyright (5-year life) | 146,400 | ||
| 9/1/20 | Research and development costs | 212,000 | ||
| $1,424,800 |
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson
17th edition
78025826, 978-1259564239, 1259564231, 978-0078025822
