Lake Company, organized in 2020, has the following transactions related to intangible assets in that year. Lake Company uses the calendar year for financial reporting. 1/1/2020 Purchased patent (9-year life) $540,000 4/1/2020 Purchased trademarks (indefinite life) 240,000 7/1/2020 Purchased copyright on artwork; expiration date 7/1/2035 345,000 12/31/2020 Research and development costs 217,000 Enter your answers below in whole dollars without a $ sign (e.g
Lake Company, organized in 2020, has the following transactions related to intangible assets in that year. Lake Company uses the calendar year for financial reporting. 1/1/2020 Purchased patent (9-year life) $540,000 4/1/2020 Purchased trademarks (indefinite life) 240,000 7/1/2020 Purchased copyright on artwork; expiration date 7/1/2035 345,000 12/31/2020 Research and development costs 217,000 Enter your answers below in whole dollars without a $ sign (e.g
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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Lake Company, organized in 2020, has the following transactions related to intangible assets in that year. Lake Company uses the calendar year for financial reporting.
1/1/2020 |
Purchased patent (9-year life) |
$540,000 |
4/1/2020 |
Purchased trademarks (indefinite life) |
240,000 |
7/1/2020 |
Purchased copyright on artwork; expiration date 7/1/2035 |
345,000 |
12/31/2020 |
Research and development costs |
217,000 |
Enter your answers below in whole dollars without a $ sign (e.g., xxx).
- How much expense will Lake Company recognize in 2020 due to the purchased patent?
- How much expense will Lake Company recognize in 2020 due to the purchased trademarks?
- How much expense will Lake Company recognize in 2020 due to the purchased copyright?
- How much expense will Lake Company recognize in 2020 due to its Research and development?
- Based on the above, what is the net book value of total intangible assets that Lake Company’s balance sheet will show on Dec. 31, 2020?
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