Jan. $2$ Purchased a patent $(7-$year life$)$ $$313,950,$

July $1$ Acquired a $9-$year franchise; expiration date July $1,2036,$ $$583,200$

Sept. $1$ Research and development costs $$176,500.$

$($a$)$ and $($b$)$

Your Answer Correct Answer

Your answer is partially correct.

$($a$)$ Prepare a tabular summary to record the January $1$ balance in the Goodwill account as well as the $2027$ transactions related to intangibles. All costs incurred were for cash.

$($b$)$ Record any necessary amortization as of December $31,2027.$

$($If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign $($or parentheses$)$ in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.$)$