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Question - Herzogg Company, organized in 2011, has the following transactions related to intangible assets.
1/2/11 Purchased patent (7-year life) $560,000
4/1/11 Goodwill purchased (indefinite life) 360,000
7/1/11 10-year franchise; expiration date 7/1/2021 440,000
9/1/11 Research and development costs 185,000
Instructions - Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2011, recording any necessary amortization and reflecting all balances accurately as of that date.
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