On January 1, 2017, Carla Vista Co. had a balance of $347,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2017, the company had the following additional transactions. Jan. 2 Purchased a patent (6-year life) $332,850. July 1 Acquired a 9-year franchise; expiration date July 1, 2026, $604,800. Sept. 1 Research and development costs $187,500. (a) and (b) (a) Prepare a tabular summary to record the January 1 balance in the Goodwill account as well as the 2017 transactions related to intangibles. All costs incurred were for cash. (b) Record any necessary amortization as of December 31, 2017. Assets Cash + Patents Franchise Goodwill (a) Bal. $ $ to Jan. 2 July 1 Sept. 1 (b) Dec. 31 = Liabilities + Stockholders' Equity Retained Earnings Revenue - Expense = + Common Stock + Dividend $ Loss on disposal Gain on disposal Depreciation expense Amortization expense Research & development expense eTextbook and Media Attempts: 0 of 3 used Save for Later Submit Answer On January 1, 2017, Carla Vista Co. had a balance of $347,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2017, the company had the following additional transactions. Jan. 2 Purchased a patent (6-year life) $332,850. July 1 Acquired a 9-year franchise; expiration date July 1, 2026, $604,800. Sept. 1 Research and development costs $187,500. (a) and (b) (a) Prepare a tabular summary to record the January 1 balance in the Goodwill account as well as the 2017 transactions related to intangibles. All costs incurred were for cash. (b) Record any necessary amortization as of December 31, 2017. Assets Cash + Patents Franchise Goodwill (a) Bal. $ $ to Jan. 2 July 1 Sept. 1 (b) Dec. 31 = Liabilities + Stockholders' Equity Retained Earnings Revenue - Expense = + Common Stock + Dividend $ Loss on disposal Gain on disposal Depreciation expense Amortization expense Research & development expense eTextbook and Media Attempts: 0 of 3 used