Reference no: EM132560140

Question - The following transactions relates to intangible assets of Corova Corporation and occurred on or near December 31, 2018. Complete the chart below by writing the journal entry(ies) needed at that date to record the transaction and at December 31, 2019 to record any resultant amortization. If no entry is required at a particular date, write "none needed."

1. Corova paid Grand Company $500,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Corova is in business.

2. Corova spent $600,000 developing a new manu-facturing process (economic viability not achieved). It has applied for a patent, and it believes that its application will be successful.

3. In January, 2015, Corova 's application for a patent (#2 above) was granted. Legal and registration costs incurred were $140,000. The patent runs for 20 years. The manufacturing process will be useful to Corova for 10 years.

4. Corova incurred $172,000 in successfully defend-ing one of its patents in an infringement suit. The patent expires during December, 2022.

5. Corova incurred $480,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $252,000, is deemed worthless.

6. Corova paid Sneed Laboratories $104,000 for research and development work performed by Sneed under contract for Minton. The benefits are expected to last six years.