Reference no: EM132487404
Ivanhoe Limited organized late in 2016 and set up a single account for all intangible assets.
The following summary shows the entries in 2017 (all debits) that have been recorded in Intangible Assets since then:
Jan. 2 Purchased patent (8-year life) $338,000
Mar. 31 Costs to search for new ways to apply patent that was purchased on Jan. 2 $21,000
Apr. 1 Purchased goodwill (indefinite life) $314,000
July. 1 Purchased franchise with 10-year life; expiration date July 1, 2027 $257,000
July. 1 Promotional costs to increase the future economic benefit of the goodwill that was purchased on Apr. 1 $33,000
Aug. 1 Payment for copyright (5-year life) $142,000
Aug. 1 Purchased trademark (3-year life) $14,400
Aug. 1 Purchased customer list (2-year life) $8,400
Sept 1 Research costs $238,000
$1,365,800
Required: (round all answers to 0 decimal place)
Question a) Make the entry as at December 31, 2017, for any necessary amortization so that all balances are accurate as at that date.
Question b) Provide the asset amounts reported on the December 31, 2017 statement of financial position.