Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The intangible assets and goodwill reported by Cullumber Corporation at December 31, 2020, follow: $32,600 16,300 $ 16,300 Copyrights (#1) Less: Accumulated amortization Trademarks Goodwill
The intangible assets and goodwill reported by Cullumber Corporation at December 31, 2020, follow: $32,600 16,300 $ 16,300 Copyrights (#1) Less: Accumulated amortization Trademarks Goodwill 56,810 121,090 Total $194,200 A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017 and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually, The following cash transactions may have affected intangible assets and goodwill during 2021 Jan. July 1 Sept. 1 Paid $7,130 in legal costs to successfully defend the trademarks against infringement by another company Developed a new product, incurring $202,150 in research and $48,600 in development costs with probable future benefits. The product is expected to have a useful life of 20 years. Paid $59.780 to a popular hockey player to appear in commercials advertising the company's products. The commercials will air in early September Acquired another copyright (#2) for $156,000. The new copyright has a useful life of six years. Determined the fair value of the goodwill to be $93,350. There was no indication that the copyrights or trademarks were impaired. Oct. 1 Dec 31 Date Account Titles and Explanation Debit Credit Jan 5 Trademarks 7130 Cash 7130 July 1 Research Expenses 202150 Cash 202150 (To record research expense) Sept. 1 Advertising Expense 59780 Cash 48600 (To record development costs) Oct. 1 Copyrights 156000 Cash 156000 Dec 31 Loss on Disposal 27740 Goodwill 27740
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started