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Splish Brothers Industries acquired two copyrights during 2017. One copyright related to a textbook that was developed internally at a cost of $16,000. This textbook is estimated to have a useful life of 4 years from September 1, 2017, the date it was published. The second copyright (a history research textbook) was purchased from University Press on December 1, 2017, for $42,000. This textbook has an indefinite useful life.
How should these two copyrights be reported on Splish Brothers’s balance sheet as of December 31, 2017?
Copyright No. 1 $
Copyright No. 2 $
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