Intangibles: Balance Sheet Presentation and Income Statement Effects

Comp$-$tech Company has provided information on intangible assets as follows:

in Lou's accounting records at a net book value of $$1,005,000$ when Lou sold it to Comp$-$tech.

was $$1,900,000.$ Comp$-$tech estimates the useful life of the franchise to be $5$ years and takes a full year's amortization in the year of purchase.

Comp$-$tech incurred R&D costs in $2019$ as follows:

Comp$-$tech estimates that these costs will be recouped by December $31,2020.$

Required:

Prepare a schedule showing the intangibles section of Comp$-$tech's balance sheet at December $31,2019.$

Comp$-$tech Company

Intangible Assets Section of Balance Sheet

December $31,2019$Intangibles: Balance Sheet Presentation and Income Statement Effects

Comp$-$tech Company has provided information on intangible assets as follows:

in Lou's accounting records at a net book value of $$1,005,000$ when Lou sold it to Comp$-$tech.

was $$1,900,000.$ Comp$-$tech estimates the useful life of the franchise to be $5$ yeaIntangibles: Balance Sheet Presentation and Income Statement Effects

Comp$-$tech Company has provided information on intangible assets as follows:

in Lou's accounting records at a net book value of $$1,005,000$ when Lou sold it to Comp$-$tech.

was $$1,900,000.$ Comp$-$tech estimates the useful life of the franchise to be $5$ years and takes a full year's amortization in the year of purchase.

Comp$-$tech incurred R&D costs in $2019$ as follows:

Comp$-$tech estimates that these costs will be recouped by December $31,2020.$

On January $1,2019,$ Comp$-$tech estimates, based on new events, that the remaining life of the patent purchased on January $1,2018,$ is only $5$ years from January $1,2019.$

Required:

Prepare a schedule showing the intangibles section of Comp$-$tech's balance sheet at December $31,2019.$

Comp$-$tech Company

Intangible Assets Section of Balance Sheet

December $31,2019$