Date The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $246,000 balance in this account at the end of 2021 is as follows: Transaction Feb-03 State incorporation fees and legal costs related to organizing the corporation Mar-01 Fire insurance premium for three-year period Mar-15 Purchased a copyright Apr-30 Research and development costs Jun-15 Legal fees for filing a patent on a new product resulting from an R&D project Sep-30 Legal fee for successful defense of patent developed above Oct-13 Entered into a 10-year franchise agreement with franchisor Various Advertising costs Total Required: Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Amount $ $ 9,000 7,000 39,000 59,000 7,000 31,000 59,000 35,000 2,46,000

Date The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $246,000 balance in this account at the end of 2021 is as follows: Transaction Feb-03 State incorporation fees and legal costs related to organizing the corporation Mar-01 Fire insurance premium for three-year period Mar-15 Purchased a copyright Apr-30 Research and development costs Jun-15 Legal fees for filing a patent on a new product resulting from an R&D project Sep-30 Legal fee for successful defense of patent developed above Oct-13 Entered into a 10-year franchise agreement with franchisor Various Advertising costs Total Required: Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Amount $ $ 9,000 7,000 39,000 59,000 7,000 31,000 59,000 35,000 2,46,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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