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Lake Company, organized in 2017, has the following transactions related to intangible assets. Lake Company uses the calendar year for financial reporting. 1/1/17 Purchased patent
Lake Company, organized in 2017, has the following transactions related to intangible assets. Lake Company uses the calendar year for financial reporting.
1/1/17 | Purchased patent (8-year life) | $560,000 |
4/1/17 | Goodwill purchased (indefinite life) | 360,000 |
7/1/17 | Purchased copyright on artwork; expiration date 7/1/2037 | 440,000 |
9/1/17 | Research and development costs | 185,000 |
Enter your answers below in whole dollars without a $ sign (e.g., xxx).
- How much expense will Lake Company recognize in 2017 due to the purchased patent?
- How much expense will Lake Company recognize in 2017 due to the purchased Goodwill?
- How much expense will Lake Company recognize in 2017 due to the purchased copyright?
- How much expense will Lake Company recognize in 2017 due to the Research and development?
- Based on the above, what is the net book value of total intangible assets that Lake Companys balance sheet will show on Dec. 31, 2017?
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