Question

Send to Gradebook < Prev Next > Question 1 --/1 View Policies Current Attempt in Progress The following transactions involving intangible assets of Minton Corporation occurred on or near December 31, 2017. 1. Minton paid Grand Company $400,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Minton is in business. 2. Minton spent $600,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful. 3. In January, 2018, Minton's application for a patent (#2 above) was granted. Legal and registration costs incurred were $210,000. The patent runs for 20 years. The manufacturing process will be useful to Minton for 10 years. 4. Minton incurred $160,000 in successfully defending one of its patents in an infringement suit. The patent expires during December, 2021. 5. Minton incurred $480,000 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $252,000, is deemed worthless. 6. Minton paid Sneed Laboratories $104,000 for research and development work performed by Sneed under contract for Minton. The benefits are expected to last six years. ulto Minton for 10 years stration costs incurred we Part 1 Prepare journal entry (ies) for on the date of transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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Answer 1

Questionnai solutions Part 1: Journal Entries on the date of transaction" No account. Title and Explanation Debit ($) Ereditls) - 1. Franchise : $400,000 $400,000 (to record payment made) . Research & Development Expense $600.000 Cash $ GooJoDo to record amount spend on bevelopming new manufacturing process) 3. Patents :: $210,000 Geish Ito record degistrertion cost incurred on pertents) $210,000

$ 160,000 $160,000 ho patents Cash (to record successfully defending - infringement suit on patents) 5. Legal fees Expense cash eto record amount incurred) $180000 . $480,000 $252,000 Patent Eolpense casou cvet patent Go (to record unamostises cost) $2.52,000 Suzan $104,000 $104,000 6. Research & Development Expense T no cash or (to record camount incurred on research and Development). or con

part 2 No 1. 2. ; Journal Entries on December 31, 2018, account. Titles and Explanation Debit (6) Exebit (6) No Entry $0 $0 No Entry $ 21,000 3. Patent Amortization Expense . $21,000 . Pacents ($210,000 110) . : (to record amortization cost) ; SEASE? : $48,000 $48,000 ho pabent Amortization Expense. . . patents ($480,000/10) (to record amortization cost 5. . NO Eritzia . Das $0 $0 .6: No Entry $0. 50
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