Reference no: EM13938765
ACQUISITION AND AMORTIZATION OF INTANGIBLE ASSETS
TLM Technologies had these transactions related to intangible assets during 2009.
Jan. 2 Purchased a patent from Luna Industries for $200,000. The remaining legal life of the patent is 15 years and TLM expects the patent to be useful for 8 years.
5 Paid legal fees in a successful legal defense of the patent of $80,000.
June 29 Registered a trademark with the federal government. Registration costs were $12,000. TLM expects to use the trademark indefinitely.
Sept. 2 Paid research and development costs of $500,000.
Required:
1. Prepare the journal entries necessary to record the transactions.
2. Prepare the entries necessary to record amortization expense for the intangible assets.
3. What is the balance of the intangible assets at the end of 2009?
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