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The intangible assets and goodwill reported by Cullumber Corporation at December 31,2020 , follow: A copyright (#1) was acquired on January 1, 2019, and has
The intangible assets and goodwill reported by Cullumber Corporation at December 31,2020 , follow: 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. 5 Paid $7,130 in legak costs to successfully defend the trademarks against infringement by another company. July 1 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. Sept. 1 Paid $59,780 to a popular hockey player to appear in commercials advertising the company's products. The commercials will air in early September. Oct. 1 Acquired another copyright (\#2) for $156,000. The new copyright has a useful life of six years. Dec. 31 Determined the fair value of the goodwill to be $93,350. There was no indication that the copyrights or trademarks were impaired. Date Account Titles and Explanation Dec. 31 Amortization Expense Accumulated Amortization - Copyrights (To record amortization on copyrights acquired on January 1, 2019) Dec. Amortization Expense 31 Accumulated Amortization - Copyrights (To record amortization on copyrights acquired on October 1,2021 ) Dec. 31 Amortization Expense Accumulated Amortization - Development Costs (To record amortization expense on development cost) Dec. 31 Ivpaifment Loss Eoodrail
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