Solution-Make a tabular summary to record the January

Make a tabular summary to record the January balance

Reference no: EM132515506

Question - On January 1, 2017, Crane Company had a balance of $372,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2017, the company had the following additional transactions.

Jan. 2: Purchased a patent (5-year life) $351,750.

July 1: Acquired a 9-year franchise; expiration date July 1, 2026, $547,200.

Sept. 1: Research and development costs $183,500.

(a) Make a tabular summary to record the January 1 balance in the Goodwill account as well as the 2017 transactions related to intangibles. All costs incurred were for cash.

(b) Record any necessary amortization as of December 31, 2017.

Indicate what the intangible asset account balances should be on December 31, 2017.

Reference no: EM132515506

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Make a tabular summary to record the January balance

Reference no: EM132515506

Reference no: EM132515506

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