Trinh Technologies Company (TTC) has two intangible assets at the end of the year. 1. Signed a

Question:

Trinh Technologies Company (TTC) has two intangible assets at the end of the year. 1. Signed a 5-year lease for an office on March 1. TTC immediately spent $ 35,000 for leasehold improvements. TTC estimated the leasehold improvements would last for 7 years. TTC moved into the office on April 1, after the improvements were completed. 2. TTC purchased a patent for $ 6,000 on June 1. The patent was registered with the Canadian Intellectual Property Office 8 years ago. TTC estimated that it would keep the patent for 8 years.

Requirements

1. Record the acquisition of the two intangible assets.

2. Calculate the amortization of each intangible asset at December 31.

3. Record the year-end adjusting entries.

4. What is the carrying value of each asset reported in the balance sheet?

Intangible Assets
An 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...