Exercise 12-6

Pharoah Company, organized in 2016, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2017.

1/2/17		Purchased patent (9-year life)		$475,200
4/1/17		Purchase goodwill (indefinite life)		365,600
7/1/17		Purchased franchise with 10-year life; expiration date 7/1/27		456,000
8/1/17		Payment of copyright (5-year life)		120,000
9/1/17		Research and development costs		241,000
				$1,657,800

Part A: Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. **6 parts**

Part B: Make the entry as of December 31, 2017, recording any necessary amortization. **4 parts**

Part C: Reflect all balances accurately as of December 31, 2017. (Goodwill, Franchises, Copyrights, R&D Costs, Patents - select correct 4 and provide balances)