Chapter 12, Problem 8E

To determine

Patent: The patent is defined as right granted by government to an inventor to make and sell an invention for a set period.

Franchises: A franchise is an authority that is given by an organization to someone, allowing them to sell its goods or services or to take part in an activity which the organization controls.

Research & Development Costs: The costs that are incurred during the development and introduction of new products to the market or during the improvement of existing products.

(a)

To determine and prepare a schedule showing the intangibles section of C Company balance sheet on December 31, 2017.

To determine

(b)

To prepare: To prepare the schedule showing the income statement effect for the year ended December 31, 2017.