The intangible assets and goodwill reported by Sunland Corporation at December 31, 2020, follow: Copyrights (#1) $36,120 $ 18,060 Less: Accumulated amortization 18,060 Trademarks 53,130 Goodwill 124,750 Total $195,940 A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2021: Paid $6,690 in legal costs to successfully defend the trademarks against infringement by another company. Jan. July Developed a new product, incurring $193,940 in research and $48,300 in development costs with probable future benefits. The product is expected to have a useful life of 21 years. 1 Sept. Paid $59,790 to a popular hockey player to appear in commercials advertising the company's products. The
The intangible assets and goodwill reported by Sunland Corporation at December 31, 2020, follow: Copyrights (#1) $36,120 $ 18,060 Less: Accumulated amortization 18,060 Trademarks 53,130 Goodwill 124,750 Total $195,940 A copyright (#1) was acquired on January 1, 2019, and has a useful life of four years. The trademarks were acquired on January 1, 2017, and are expected to have an indefinite life. The company has a December 31 year end and prepares adjusting journal entries annually. The following cash transactions may have affected intangible assets and goodwill during 2021: Paid $6,690 in legal costs to successfully defend the trademarks against infringement by another company. Jan. July Developed a new product, incurring $193,940 in research and $48,300 in development costs with probable future benefits. The product is expected to have a useful life of 21 years. 1 Sept. Paid $59,790 to a popular hockey player to appear in commercials advertising the company's products. The
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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