Solution-Calculate the amortization of the patent

Calculate the amortization of the patent

Reference no: EM132723157

Problem - Track Town Co. had the following transactions involving intangible assets:

Jan. 1 Purchased a patent for leather soles for $10,000 and estimated its useful life to be 10 years.

Apr. 1 Purchased a copyright for a design for $15,000 with a life left on the copyright of 25 years. The estimated remaining (economic) life of the copyright is five years.

July 1 Signed a 5-year franchise agreement and opened a Starting Line high-tech running shoe store. Paid $50,000 to the franchisor.

Required -

1. Using the straight-line method, calculate the amortization of the patent, copyright, and franchise.

2. Prepare general journal entries to record the end-of-year amortizations.

Reference no: EM132723157

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Calculate the amortization of the patent

Reference no: EM132723157

Reference no: EM132723157

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