how How can due entries?Intangibles: Balance Sheet Presentation and Income Statement EffectsBringle Company has provided information on intangible assets as follows:A patent was purchased from Lou Company for $1,845,000 on January 1, 2018. Bringle estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $1,635,000 when Lou sold it to Bringle.During 2019, a franchise was purchased from Rink Company for $470,000. In addition, 6% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Bringle estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase.Bringle incurred R&D costs in 2019 as follows: Materials and equipment$150,000Personnel130,000Indirect costs69,000 $349,000Bringle estimates that these costs will be recouped by December 31, 2020.On January 1, 2019, Bringle estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 10 years from January 1, 2019.Required:Prepare a schedule showing the intangibles section of Bringle's balance sheet at December 31, 2019.

We have the following information: A patent was purchased from Lou Company for $1,845,000 on…

Answered: Intangibles: Balance Sheet Presentation…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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how How can due entries?

Intangibles: Balance Sheet Presentation and Income Statement Effects

Bringle Company has provided information on intangible assets as follows:

A patent was purchased from Lou Company for $1,845,000 on January 1, 2018. Bringle estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $1,635,000 when Lou sold it to Bringle.
During 2019, a franchise was purchased from Rink Company for $470,000. In addition, 6% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $2,000,000. Bringle estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase.
Bringle incurred R&D costs in 2019 as follows:

Materials and equipment $150,000

Personnel 130,000

Indirect costs 69,000

$349,000

Bringle estimates that these costs will be recouped by December 31, 2020.
On January 1, 2019, Bringle estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 10 years from January 1, 2019.

Required:

Prepare a schedule showing the intangibles section of Bringle's balance sheet at December 31, 2019.

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