Question
On January 1, 2021, Apl Inc. purchased two copyrights. Copyright A has a limited life of 25 years, while Copyright B has an indefinite life.
On January 1, 2021, Apl Inc. purchased two copyrights. Copyright A has a limited life of 25 years, while Copyright B has an indefinite life. Copyright A was purchased for $75,000, and Copyright B was purchased for $40,000.
a) Calculate the total amount of amortization on the copyrights to be recorded in 2021.
b) Assume accumulated amortization on copyrights is $15,000 at the end of 2025. On January 1, 2026, Empress spent $80,000 in legal fees defending Copyright A. The defense extended the total life of Copyright A by 4 additional years. Record the entry on January 1, 2026, and the year end adjusting amortization entry
Journal entry for Jan, 1, 2026
Journal entry for Dec 31,2026
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