Ivanhoe Limited organized late in 2016 and set up a single account for all intangible assets. The following summary shows the entries in 2017 (all debits) that have been recorded in Intangible Assets since then:

Jan. 2 Purchased patent (8-year life) $338,000

Mar.31 Costs to search for new ways to apply patent that was purchased on 21,000Jan. 2

Apr. 1 Purchased goodwill (indefinite life) 314,000

July. 1 Purchased franchise with 10-year life; expiration date July 1, 2027 257,000

1 Promotional costs to increase the future economic benefit of the 33,000goodwill that was purchased on Apr. 1

Aug. 1 Payment for copyright (5-year life) 142,000

1 Purchased trademark (3-year life) 14,400

1 Purchased customer list (2-year life) 8,400

Sept 1 Research costs 238,000

$1,365,800

Required:

A)

Prepare the necessary entry to clear the Intangible Assets account and to set up separate

accounts for distinct types of intangibles.

B)

Make the entry as at December 31, 2017, for any necessary amortization so that all

balances are accurate as at that date.

C)

Provide the asset amounts reported on the December 31, 2017 statement of financial

position.

D)

In early January 2018, Ivanhoe Ltd applied for and received approval for a trade name,

incurring legal costs of $52,500. In November of 2018, FJS incurred $28,200 of legal fees in a

successful defense of its trade name.

Management determines that this asset has a limited useful life. Identify the variables that

must be considered in determining the appropriate amortization period for this trade name.

Assume the trade name is assessed as having an indefinite life upon initial acquisition.

Explain the accounting implications. (calculations are not required)