Complete Problem P9-7B.

Complete Problem P9-7B. - Total $567500 d Notes All...

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Date Title of account Debit Credit a 2-Jan Patents 45000 Cash 45000 1-Jul Patents 230000 Cash or Research Dev. Cost 230000 1-Sep Prepaid Advertising Expenses 125000 Cash 125000 1-Oct Copyright 200000 Cash 200000 b 31-Dec Amortization expense 26500 Patents 26500 10000+45000/9+230000/20 31-Dec Amortization expense 7000 Copyright 7000 6000+200000/600*3 c The intangible assets section of Time Company at December 31, 2012, is presented below. Patent ($375,000 cost less $36500 amortization) $ 338500 Copyright ($260,000 cost less $31,000 amortization) 229,000
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Unformatted text preview: Total $567500 d Notes All intangible assets are recorded at cost less amorization expenses. The amortization is done based on straight line method using useful life of the intangible assets for amortization purpose. The legal fees incurred to defend the Patents for $45000 has been capitalized 31-Dec No entry for amortizaton of good will to be passed as per IAS 38. Amortization Expenses 12000 Patents 12000 90000/60*8...
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This note was uploaded on 02/24/2012 for the course BUSINES BUSINES taught by Professor Chitapradhan during the Spring '12 term at DeVry Phoenix.

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Complete Problem P9-7B. - Total $567500 d Notes All...

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