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Business, 06.04.2020 21:47 shelley3135

On January 1, 2017, Ivanhoe Company had a balance of $413,000 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2017, the company had the following additional transactions.

Jan. 2 Purchased a patent (7-year life) $355,950.
July 1 Acquired a 9-year franchise; expiration date July 1, 2,026, $597,600.
Sept. 1 Research and development costs $177,000.

Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement)

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On January 1, 2017, Ivanhoe Company had a balance of $413,000 of goodwill on its balance sheet that...
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