Reference no: EM132508

Question:

The subsequent transactions involving intangible assets of Minton Corporation occurred on or near December 31, 2010. Entire the chart below by writing the journal entries needed at that date to record the transaction and at December 31, 2011 to record any resultant amortization. If no entry is needed at a particular date, write "none needed."

On Date of Transaction On December 31, 2011

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

2. Minton spent $600,000 developing a latest manufacturing process. It has applied for a patent, and it believes that its application can be successful.

3. In January, 2011, Minton's application for a patent was granted. Legal and registration costs incurred were $120,000. The patent runs for 20 years. The manufacturing process can be useful to Minton for 10 years.

4. Minton incurred $192,000 in productively defending one of its patents in an infringement suit. The patent expires during December, 2014.

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