Munn Inc. had the following intangible account balance at December 31, 2018:
Information relating to Munn’s patent and transactions involving other intangible assets during 2019 includes the following:
Required:
1.
Prepare a schedule for the expenses related to intangible assets of Company M at December 31, 2019.
Intangible assets: These are the long-term assets which are not physical in nature, but possess value. The intangible assets would be amortized over their definite useful life or limited useful life, and those with indefinite or unlimited lives are not amortized.
Prepare a schedule of the expenses related to intangible assets of Company M at December 31, 2019 as follows:
Company M | |
Schedule of expenses relating to intangible assets | |
For the year ended December 31, 2019 | |
Particulars | Amount |
Amortization of intangibles: | Â |
Patent (1) | $28,000 |
Non-compete agreement (2) | $40,000 |
Total | $68,000 |
Table (1)
Working note (1):
Calculate the amortization of patent.
2.
Prepare the intangible assets section of Company M’s balance sheet at December 31, 2019.
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