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Kopke Company, organized in 2012, has these transactions related to intangible assets in that year:
Jan. 2
Purchased a patent (5-year life) $280,000.
Apr. 1
Goodwill acquired as a result of purchased business (indefinite life) $360,000.
July, 1
Acquired a 9-year franchise; expiration date July 1, 2021, $540,000.
Sept. 1
Research and development costs $185,000.
Instructions
(a) Prepare the necessary entries to record these transactions related to intangibles. All costs incurred were for cash.
(b) Make the entries as of December 31, 2012, recording any necessary amortization.
(c) Indicate what the balances should be on December 31, 2012.
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