Question
The Horstmeyer Corporation commenced operations early in 2016. A number of expenditures were made during 2016 that were debited to one account called intangible asset
The Horstmeyer Corporation commenced operations early in 2016. A number of expenditures were made during 2016 that were debited to one account called intangible asset. A recap of the $226,500 balance in this account at the end of 2016 is as follows: |
Date | Transaction | Amount | |||
2/3/16 | State incorporation fees and legal costs related to organizing the corporation | $ | 7,500 | ||
3/1/16 | Fire insurance premium for three-year period | 5,500 | |||
3/15/16 | Purchased a copyright | 36,000 | |||
4/30/16 | Research and development costs | 56,000 | |||
6/15/16 | Legal fees for filing a patent on a new product resulting from an R&D project | 5,500 | |||
9/30/16 | Legal fee for successful defense of patent developed above | 28,000 | |||
10/13/16 | Entered into a 10-year franchise agreement with franchisor | 56,000 | |||
Various | Advertising costs | 32,000 | |||
Total | $ | 226,500 | |||
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