TLM Technologies had these transactions related to intangible assets during 2019. Jan. 2 Purchased a patent from
Question:
TLM Technologies had these transactions related to intangible assets during 2019.
Jan. 2 Purchased a patent from Luna Industries for $175,000. The remaining legal life of the patent is 15 years, and TLM expects the patent to be useful for 8 years.
Jan. 5 Paid legal fees in a successful legal defense of the patent of $90,000.
June 29 Registered a trademark with the federal government. Registration costs were $4,000.
TLM expects to use the trademark indefinitely.
Sept. 2 Paid research and development costs of $478,200.
Required:
1. Prepare the journal entries necessary to record the transactions.
2. Prepare the entries necessary to record amortization expense for the intangible assets.
3. What is the balance of the intangible assets at the end of 2019?
Intangible AssetsAn intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...
Step by Step Answer:
1 Journal Date Account and Explanation Debit Credit 2019 Jan 2 Patent 1750...View the full answer
