Marigold Corp., organized in 2020, has the following transactions related to intangible assets.1/2/20 Purchased patent (6-year life) $474,0004/1/20 Goodwill purchased (indefinite life) 360,0007/1/20 14-year franchise; expiration date 7/1/2034 588,0009/1/20 Research and development costs 166,000Calculate ending balances as at 12/31/20.  Ending balancesPatents $enter the ending balance in dollars Goodwill $enter the ending balance in dollars Franchises $enter the ending balance in dollars Research and Development Expense $enter the ending balance in dollars

Question
Asked Nov 4, 2019
51 views

Marigold Corp., organized in 2020, has the following transactions related to intangible assets.

1/2/20   Purchased patent (6-year life)   $474,000
4/1/20   Goodwill purchased (indefinite life)   360,000
7/1/20   14-year franchise; expiration date 7/1/2034   588,000
9/1/20   Research and development costs   166,000

Calculate ending balances as at 12/31/20.

   
Ending balances
Patents
  $enter the ending balance in dollars 
Goodwill
  $enter the ending balance in dollars 
Franchises
  $enter the ending balance in dollars 
Research and Development Expense
  $enter the ending balance in dollars 
check_circle

Expert Answer

Step 1

A patent is the conceding of a right to the of a property by the government to the inventor.

Goodwill shows that a business has a utility past its really physical resources and liabilities.

Step 2

Patents:

Amortization of patent= Cost ÷ Life in years

                                    =$474,000 ÷ 6 yrs.

                                    = $79,000

Ending bal. of patent on 12/31/20= Cost – Amortization

                                                      = $474,000 - $79,000

                                          &nb...

help_outline

Image Transcriptionclose

Cost 6 Amortization of patent= Life in years 12 $588,000 6 14 12 = $21,000

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Where do we record retained earnings in a balance sheet?

A: Retained earnings refers to the amount of earnings that are not paid as dividends to the stockholder...

question_answer

Q: Break-Even Sales Currently, the unit selling price of a product is $390, the unit variable cost is $...

A: Break even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No ...

question_answer

Q: Number 3 City University uses a process cost system to accumulate costs incurred in handling student...

A: a. Compute the equivalent units of service for material and conversion costs:

question_answer

Q: How do you find the date goods are received, last day of discount, and end of credit period when the...

A: Compute the date of goods received:  The invoice is dated for November 27th. Hence, the goods are re...

question_answer

Q: ) Provide an accurate, full and complete explanation and implication of the information presented in...

A: Click to see the answer

question_answer

Q: Practice 3 : a)     Explain the importance of incentive systems for motivating performance. b)     I...

A: In order to achieve the goal of the company, the organization should provide compensation program dr...

question_answer

Q: Dividing Partnership IncomeTyler Hawes and Piper Albright formed a partnership, investing $116,000 a...

A: The division of net income has been shown in above equation. Where the net income is divided in both...

question_answer

Q: Explain how to calculate the after stock dividend to enter on the Balance Sheet. At the beginning of...

A: A Stock Dividend is the payment of dividends in the forms of shares of the company. In cash crunch s...

question_answer

Q: Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct mat...

A: Calculation of cost of completed and transferred-out production and inventory in process, ending: