E12-6 (Recording and Amortization of Intangibles) Research Company, organized in 2013, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2014.

01/02/2014

Purchased patent,

8

year life

$350,000

04/01/2014

Purchased goodwill, indefinite life

$360,000

07/01/2014

Purchased franchise with

10

year life,

$450,000

expiration date 7/1/24

08/01/2014

Payment of copyright,

5

year life

$156,000

09/01/2014

Research and development costs

$215,000

$1,531,000

Instructions:

Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2014, recording any necessary amortization and reflecting all balances accurately as of that date. (Use straight-line amortization.)

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Balance of Intangible Assets as of December 31, 2014

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